Wanting to start your own business but unsure what to do first? Make a resolution to be your own boss in 2016. If you have been thinking about starting your own business, turn your dreams into a reality by writing a business plan and seeking advice.
Stephen Burrow, attorney with Gulf Coast law firm The Burrow Law Firm, recommends that budding entrepreneurs work with a lawyer to make sure the business is set up properly. Burrow’s legal practice includes an emphasis on business law and business development.
“Owning your own business can be very rewarding,” said Burrow. “Each owner should address necessary legalities in advance as to prevent issues down the road. The right attorney can handle your business formation and set up your management and operating agreement so you can focus on growing your business.”
One of the first decisions you will make when starting your own business is deciding the type of entity. Whether you choose to remain a sole proprietor or form a partnership, corporation, or a limited liability company, the type of business structure you choose will have significant legal and tax implications.
“Attorneys and accountants can help you decide what structure best suits your needs,” said Burrow. “Each one has its own advantages, and you will want to make the decision that best fits your needs.”
Burrow also suggests making sure your operational documents are in order.
“If you are conducting business where you will need contracts and engagement letters, it’s best to make them simple and flexible but firm and effective,” said Burrow. “Lawyers are able to help entrepreneurs get these documents structured the right way from the very beginning.”
Wondering how you will fund your new venture? Burrow says turning to a local bank is usually your best option. Banks are able to provide loans and lines of credit using collateral and sometimes a personal guaranty.
However new business owners can also consider private firms and individuals.
“Private firms and individuals often demand higher interest rates but may be less interested in your credit history,” said Burrow. “It’s worth taking the time to weigh all of your financing options before deciding how you will proceed.”
Burrow encourages future business owners not to be overwhelmed with the legalities and terminology of setting up shop. “With the right advice, you can create the business structure which works best for you and your new business,” he added.