If you are thinking of starting a new company or changing your entity let us help you come up with the best entity for your situation, and make the transition as painless as possible.
First-Time Business Owner Legal Mistakes
Many first-time business owners neglect the technicalities of starting a new business. Here’s the rule: if you haven’t registered your business, or obtained the proper permits, it’s not a business yet! Neglecting this important first step can lead to steep fees, complicated tax problems, and even closure of your business. So before you do anything else, make sure that you have the proper certification and structure in place to operate.
Choosing Your Business Structure
The first step is determining what kind of business you’ll have, whether it will be sole proprietorship, an LLC, or one of the many other forms of business entities. Here are some considerations that will be important when determining what kind of organization suits your needs best:
- How many people will have ownership in the business
- How your taxes will be structured
- Liability, and whether you are okay with personal liability in the business, or if you want it to be restricted to the business
- Provisions for transfer of ownership, or changes that can happen when one or more member leaves the business
- Capital and investor needs of the business
Some Common Business Structures:
- LLC (or Limited Liability Corporations)
- Limited Partnerships
- Sole Proprietorships
Set Your Business Up Properly to Prevent Problems Down the Road
While you’re working on your new business, there are many aspects that are fun to plan out: advertising, logos, community outreach, product development, and pitch meetings might all be things that you love brainstorming and coordinating. However, technical details are usually not high on anyone’s “fun” list. Business licensure, operating permits, worker’s compensation, and tax registration are essential parts of a fully-operational company. These details can become complicated, and working off of incomplete information, without the expertise of a professional, can get your business into complicated snarls, which will become more and more evident as your business grows and develops.
Your business should be planted on solid ground, confident in the efficacy and accuracy of its structure. Once all the proper paperwork is obtained, signed, and filed, you can move forward without worry or fear of hidden loopholes and complications that can stop your business from getting up off the ground.
Here at Klingler & Associates, we have over 100 years of combined experience managing business law and taxes for a variety of business entities throughout Utah. We know the laws and regulations that you’ll need, and how to set up a system that will nurture your business’ needs. Contact us today.