What to Ask: Incorporation and Startup Tips | Mike Ross, Esq.
Starting a new business? UpCounsel attorney Mike Ross explains what every startup should be asking their legal team about incorporation and startup tips2 min read
What type of entity should I use?
It is important to carefully choose if a corporation or an LLC is right for your Company so that you can match your business's objective
What state should I use to set up my corporation?
Typically, the state of residence should be used unless other factors outweigh the convenience of your home state.
What corporate forms do I need to protect my business?
It is vital to protecting your assets to have the correct agreements in place when you hire employees and contractors, as well as dealing with customers and suppliers.
What is the best way a small business owner can protect personal wealth and assets from business risks?
Incorporate or form an LLC.
What specifically are small business owners most confused about when you first meet with them?
Why do I need a separate entity for my business?
How can quality legal services help a small business grow?
An experienced attorney will have encountered many of the issues you are facing and can help you protect yourself, as well as providing advice to help your company grow.
How can quality legal services help small businesses save money?
By using quality legal services in the beginning a company can save itself a lot of money and headaches.
How can small businesses maximize the value of their legal team’s services?
Share as much about your business vision and any concerns with your attorney.
Should business partners have the same amount of equity in a company? Why or why not?
No, in the event there is a disagreement you will be gridlocked and unable to do anything. If equity must be shared equally, have a method to break any deadlock.
What are the top three things a small business owner should be aware of when purchasing an existing business?
Accurately determine the value, Due diligence reviewing customer lists, sale records, advertising materials, and employee contracts, Find out if there are any human resources issues or outstanding lawsuits pending against the company.
Do you have any other essential legal guidance for startups that you haven't already included in this survey?
Be prepared for challenges in your path and try to enjoy every moment of making your dreams come true!