Consider These 5 Things When Starting Your Business

**Please note that this article does not represent or seek to provide legal or tax advice. Please see a qualified attorney or tax advisor for more detailed information on these topics.

Introduction

Starting a new business can be an exciting undertaking. You’ll have high hopes and aspirations, along with the prospect of delivering a great product or service to people. You will, ideally, be able to turn a nice profit, provide for your family, and potentially gain financial independence. Before you dive headlong into the fray, however, you would be wise to turn your attention to five key areas which could make or break any business, new or established.

#1 Choose the Right Business Form

It’s important to get this right. Given the importance of this step, you should consider seeking the advise of a business attorney (see #2 below) when deciding on this. For the majority of new business owners, the forms for consideration will be a sole proprietorship (where the owner and the business are essentially the same), a Limited Liability Company (“LLC” – where the business is separate from the owner, with limitations on liability), or a corporation (considered a separated entity, with limited liability, often considered the most complex business type).

#2 Get Competent Legal Help

A competent business attorney can have an significant impact on a new company, and can be helpful in a variety of different areas, such as with document review, contract drafting, human resources, tax preparation and planning, analyzing local and federal regulations, etc. While not necessarily cheap, keep in mind that many business lawyers offer flat-rate or discounted pricing in certain circumstances. Some will also offer free consultations.

#3 Find a Great Accountant

In terms of priority and importance to your business, #2 and #3 on this list are largely interchangeable – in fact, many business owners and consultants would suggest that hiring a good accountant should be the first priority of a new business, even before an attorney. That is your call to make based on your own due diligence and particular needs, but in either case, the value of a good accountant cannot be overstated. An experienced accountant can help you get your books set up properly, maintain accurate records, tell you what the numbers mean, give solid financial advice, keep you up to speed on regulatory requirements, and much more.

#4 Get the HR Right

Human Resource issues can have a major effect on a new business – for better or for worse. Employment law is complex and changing all the time. Issues that could impact a new business might include hiring practices, wage concerns, discrimination and harassment of various types, employment taxes, terminations, employee safety and OSHA regulations, and on and on.

Although it is an overused cliché, the saying “people are a company’s most important resource” is true. Whom you hire, how you hire them, and what you do while they are in your employ, can make or break your business. It could also create a web of complex issues that you have to learn to navigate properly (or bring in the proper professionals to help you do so).  

#5 Take Care of the Taxes

Take care of your tax issues. They are often easy to overlook, but can be of critical importance to the successful functioning of the business.  Tax questions arise from the moment you open the doors of your business – and even before. This is another area where an experienced attorney or accountant can work wonders.

Conclusion

There is no adventure quite like that of starting a new enterprise. It is an exciting undertaking, with the possibility of producing wealth and success. However, as the old folks used to say, if you’re gonna do it, do it right. Do your homework, take your time, ally yourself with competent, experienced professionals, and will establish the surest footing upon which to build your future business success.