• June 2018
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What do you need to make sure of when first incorporating your startup?

Before incorporating, you will want to make sure you know what type of entity to choose. There are a number of different options for startups as far as business structure. So before you take any steps, you need to identify what are the goods/services your company will be providing, how/who it will be owned by, where you will be operating, etc.

Aside from these general considerations, you will want to look into the state laws where your company will be located. Each incorporation process varies from State to States, so you will need to be mindful of this.

Basically, incorporating a business establishes your company as a separate legal entity from yourself (the owner). This gives you the protection of limited liability, thus safeguarding your personal assets from business obligations. However, there are a number of costs associated to incorporating and it can be a somewhat tedious process. Many people will say that incorporating is easy, but that simply mulls over the importance of incorporating.

When your company is beginning, you will want to draft by-laws and set a particular corporate structure. Many people will use boilerplate forms they find online for these types of corporate documents. Then later on down the road, when a legal issue comes up, these same people are wishing they would have taken a little more care when founding their corporation.

In order to avoid these types of problems, you should most likely talk to a lawyer before moving forward. Take a look at our site LawTrades. You can contact any attorney 24/7, and have a direct platform to receive legitimate, convenient legal advice.

I know that hiring a lawyer is the last thing you want to do because it means added cost to your operations. But take it from me. I have founded two startup companies, and I cannot tell you how grateful I am that I consulted with my attorneys from day one. I have avoided so many “business ending” situations simply because I was well-informed when developing my corporate infrastructure.

Other than hiring an attorney, you should check your state website about what steps you will need to take and what requirements are necessary. I hope this answer helps you out. Best of luck to you with your company!

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