As entrepreneurs ourselves and with a focus on representing businesses of many sizes, we understand the roadblocks associated with actually starting your business from both a personal and legal perspective. Once the excitement of drafting your business plan is behind you, the more challenging legal and compliance questions begin to surface.
1. What’s the right structure for my business?
One of the most important early decisions to putting the wheels in motion is selecting the right structure. It can impact everything from ownership and control to liability protection, taxation, and long-term flexibility.
We regularly help clients evaluate the available options such as sole proprietorships, partnerships, limited liability companies, and various forms of corporations (S-corps and C-corps), and determine which best fits their goals, industry, and growth plans. Each structure has its own advantages and considerations, and we will walk through these with you to ensure you understand the implications for liability and governance, and coordinate with your tax professional regarding tax treatment.
Once a structure is selected, we assist with preparing and filing the necessary formation documents, applying for your EIN, actually issuing ownership interests, drafting the foundational agreements (such as operating agreements or bylaws), and advising on compliance obligations to set the business up for future growth.
2. What are formation documents?
Once you have selected your business structure, an important next step is ensuring the proper documents are prepared and filed with the state to legally establish the entity.
We help clients draft and file the key formation documents (such as Articles of Organization or Incorporation), as well as preparing customized governing documents such as operating agreements, bylaws, or shareholder agreements.
Bylaws and operating agreements are the “rulebooks” for your business. They outline ownership, decision-making, and what happens if things change down the road. Having them in place helps prevent disputes, protects your business legally, and demonstrates to banks, investors, partners, regulators, and even potential buyers that your company is built on a solid foundation.
Perhaps most importantly, we will also ensure that ownership interests are properly issued to your founding owners and also consider potential avenues for future growth. Our goal is to make sure your legal foundation is accurate, complete, and aligned with your business objectives.
3. Do I need an EIN?
An EIN is a unique identifier number issued by the IRS that is required for most businesses to open a bank account, hire employees, and file taxes. Even if you don’t plan to have employees right away, obtaining an EIN is often recommended as it separates the business from your personal Social Security number.
We regularly assist clients with completing and filing the EIN application to ensure it is accurate and processed quickly.
4. what about State and Local Licenses and Permits?
After formation, most businesses must secure the proper licenses or permits to operate legally. These can vary significantly depending on your industry, location, and the nature of your operations. Aside from state licenses and permits, your “local” licenses and permits may be required by the city and/or the county your business operates in.
By addressing these obligations early, you can avoid delays, penalties, or interruptions to your business operations.
5. how do i stay compliant?
We support businesses in their early stages by putting the right tools and systems in place to help them operate smoothly moving forward. We help clients with the real-world steps and challenges that come after formation so you can stay focused on growth. Here are some concrete examples of what we handle:
- Ownership and Governance Support: Drafting and updating operating agreements, bylaws, and shareholder agreements as your company evolves — whether you add partners, restructure ownership, or prepare for outside investment.
- Regulatory Compliance: Advising on annual reports, business license renewals, and state and federal filing deadlines to help you avoid penalties or administrative headaches.
- Contract Reviews and Negotiations: Reviewing vendor contracts, customer SLAs, lease agreements, and other critical documents to ensure your interests are protected as you expand operations.
- Employment Law Basics: Helping you set up employment agreements, independent contractor arrangements, and workplace policies to stay compliant as you build your team.
- Intellectual Property Protection: Guiding you on trademarks, trade secrets, and other ways to protect your brand and assets from day one.
- Corporate Recordkeeping: Setting up systems for managing meeting minutes, resolutions, and ownership records so you maintain clean corporate books — a must for investors or lenders down the road.
- Strategic Growth Planning: Advising on legal considerations when opening new locations, forming subsidiaries, or bringing on investors so your legal foundation scales with your business.
BOTTOM LINE
Starting a business involves more than just a great idea. It also requires careful planning, the right legal foundation, and ongoing compliance to ensure long-term success. From selecting the appropriate structure and filing formation documents to securing an EIN, addressing licensing needs, and maintaining proper records, each step plays an important role in protecting your business and setting it up to grow. Our team is here to guide you through the formation process and provide ongoing support, so you can focus on building your business with confidence, knowing the legal and compliance framework is in place.
