Small businesses are the life blood of this country. Continually, more and more small businesses begin the United States each year while corproate jobs are on the decline. In the years to come through 2020 and beyond, small businesses will continue to increase and expand in the United States. However, when it comes to starting a small business there are many items to consider and think about.
Entrepreneurs are a unique breed. They are visionaries with big goals, and usually are innovators in their chosen field. However, far too often, entreprenuers tend to ignore the details. However, when you own a small business, ignoring the details can destroy your business and your vision for the future. When starting a small business it is always important to secure a knowledgeable and experienced to ensure the business operations are set up correctly from the beginning. However, it is more than just an attorney that is needed, you also need a team of advisors including CPA, Certified Financial Planner, Business Advisor, and Business Attorney.
Now, this all reminds me of a story that I heard not that long ago. A family man owned a series of small businesses that included rental properties and convenience stores. One day, tragically, the convenience store was robbed at gun point and the store clerk with killed. What followed was a lawsuit against this entrepreneur by the family of the deceased store clerk. The family filed a lawsuit claiming that the store had been robbed on prior occassions and the owner had not made efforts to ensure that additional security measures were taken. In the end, the case was settled for $5 million. The entrepreneur was forced to sell his home, empty his bank accounts, and empty his retirement accounts to pay the $5 million settlement. However, it still wasn't enough. This all happened to the entreprenuer because he was a sole proprietor and did not take the time to legally protect himself and his business.
When you start your own business it is important to surround yourself with a team of trusted advisors including: CPA, Certified Financial Planner, Business Advisor, and Business Attorney. In addition, you will need the proper corporate structure (Corporation, Limited Liability Company, Limited Liability Partnership, or General Partnership). You will also need contracts with vendors, contracts with employees, agreements, and a whole host of other legal documents to ensure that your business is protected and your personal assets are protected. Failure to set things up correctly in the beginning could result in a whole host of problems later on, and even being held personally liable for the acts committed in the business.
If you have questions regarding starting a small business and worried about all the legal matters and government red tape, please call us to discuss. As always, we want to be your trusted counsel, and are always here to help.
Daniel A. Perry