Starting a Small Business

By: Timothy McFarlin | Published: April 5th, 2010 | Category: Budget & Debts

Starting a business can be a very rewarding venture, but it can also be very risky.  A person accepts certain risks when starting a small business, and one of those risks is legal liability.  A future small business owner would benefit greatly from talking with an experienced business attorney who can explain the risks and liabilities that go into starting  a business.  This information will give the future small business owner a fresh perspective of their idea and will give the individual an idea of how they can mitigate liabilities.  Many decisions have to be made before a person can operate their own business.  Things like cost, number of employees required, what type of licenses / permits are required, etc. need to be considered before doors can be opened.  Many attorneys offer to guide their clients through the legalities of setting up a small business by advising them on topics such as business structure, loan contracts, and employee rights.  Having an attorney on retainer is a great asset to any business owner and is often surprisingly affordable as many firms have small business programs available.

Legal considerations must also be taken depending on the type of business to be formed.  Different businesses encounter different risks.  Doctors, plumbers, security officers, salesmen, etc. all encounter different risks when they go to work every day.  A lawyer can put those risks into perspective for the person wanting to become their own boss.

Starting a small business is an endeavor that may require filling out certain forms from certain state and federal offices.  Unless an individual knows exactly what forms or licenses they need and where to get those forms, and attorney would be useful to ensure that no paperwork gets left out of an application package.  This would only postpone the person’s dream of opening the doors on their own business.

While it is only natural for a person to feel some level of excitement when starting a small business, the business owner must remember that keeping a level head will be paramount to the success of their endeavor.  The business owner should remember to keep enough of a level head in order to recognize when the risks are too great to start their own business.  A person should never hesitate to put a plan on hold if a better developed plan can be implemented.  Use additional waiting time to continue to build capital and accomplish necessary legal requirements before proceeding.  

When the time comes that the small business owner wants to expand into other states, more forms and more advice may be necessary.  In order to get to that point, the person starting a small business must start planning from the beginning, ensuring they are in total compliance with laws and regulations along the way.  This will reduce the chance of a small business owner having to go to court to defend the actions of their business and / or employees.  The small business owner must ensure that their employees have the same philosophy of acting in compliance and doing what is right as they do because the bad business practices of one have the potential to hurt the entire business.

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