Whether you are working with a friend, relative, or purely a business colleague, the idea of starting a business can be exciting. You have fueled each other's passion and creativity and come up with a plan for success. However, even though you may have come up with the idea together, becoming partners in the legal sense can be more complicated than many realize.
Whether a business owner opts to incorporate their company right away or after years of operation, creating a separate legal entity for the business offers many benefits. For those looking to incorporate in the North Star State, there are several essential steps:
When a small business closes its doors, there are several processes owners should ensure they follow to wind up operations. For some, there will be few formalities and little paperwork. Others have legal obligations under state and federal law. In either case, the following basic steps provide a framework for any business owner looking to move on.
When a great idea takes off, the true colors of the people involved often reveal themselves. Without an agreement in place detailing ownership of the business, dispute resolution, and other issues, an entrepreneur risks being left out in the cold. Ambiguity in the infancy of a startup company can cause significant issues later, just ask Mark Zuckerberg.
When someone spends many years building a successful business, the last thing they want is to see it fall apart. However, many business owners do not realize the importance of having a business succession plan.
Companies of all sizes have crucial decisions to make, including but not limited to raising funds, creating brand awareness, and marketing the product or service. As a result, sometimes legal issues are put off, or even totally lost in the shuffle, making the company's long-term performance less than rosy.
Crowdfunding can be an excellent resource for individuals and small businesses when they are just starting out because it allows them to raise funds quickly, from people across the country. These platforms have only increased in popularity because they can raise funds, brand awareness, and goodwill all at once. But not all crowdfunding platforms are suitable for every project.
Starting or running a business is a massive undertaking. Often, it proves to be too much work for one person to do alone. Finding a partner can therefore be crucial.
Naming a new business is one of the first things many business owners do. While it may seem like a simple (or even fun) exercise, choosing the wrong name could trigger litigation if your choice infringes upon another business's trademark.
There are numerous steps to opening a new business: from creating a business plan, to finding investors, to making your first sale. But opening the doors to your new office space is one particularly exciting and momentous step in the process.