What to Ask: Incorporation and Startup Tips | Todd Wenzel, Esq.
Starting a new business? UpCounsel attorney Todd Wenzel explains what every startup should be asking their legal team about incorporation and startup tips2 min read
What is the best entity to form for my business?
An LLC, because it is the simplest and most flexible for most businesses. However, the Secretary of State does not allow some professions to use an LLC as their entity.
How much money should I spend on Marketing?
It depends on the amount of liquid assets the company has. Start slow and then build up as the company builds and grows.
Does my company need insurance?
Yes, carry at least $1M in liability coverage if possible.
What professionals should I consult with in order to start up my business?
Legal counsel to help you set up your business, and an accountant to help set up your accounting system and discuss the company’s finances and tax strategy. A marketing consultant might also be important.
What is the best way a small business owner can protect personal wealth and assets from business risks?
Run your business separate and apart from your personal life. Set up a business entity (LLC, S corp. or C corp.) to protect personal assets form business liabilities, and obtain proper insurance to cover company risks.
What is the best way a small business can maximize its tax deductions? (Optional)
Consult with a CPA.
What specifically are small business owners most confused about when you first meet with them?
How can quality legal services help a small business grow?
Proper set up from the start.
How can quality legal services help small businesses save money?
Protect the small business owner's personal and business assets, and try to help minimize risks or liabilities.
How can small businesses maximize the value of their legal team’s services?
Hold a comprehensive meeting from the start to map out a strategy from the beginning, rather than piecemeal consultation.
Should business partners have the same amount of equity in a company? Why or why not?
If possible to keep the partners on equal footing, but it is not necessary for a successful business.
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.