These days, you can have a bona fide business up and running within hours – as long as you have the right technological skills to get a website going and something your customers or clients want.
However, starting a new business isn’t without its challenges, and you can’t afford to overlook the logistical and legal aspects of your new company’s formation.
Choosing the right business structure is key
One of the earliest decisions that you have to make is how your business will be structured. It can be very difficult for a lot of entrepreneurs to decide if they want a sole proprietorship, a general partnership, a limited liability corporation or some other type of business entity. The key is figuring out how to align your goals, tolerance for risk and plans for the future with the right business entity from the start.
Legal compliance can be difficult to manage
North Carolina admits that it has no “one-stop-shop” that makes it easy for entrepreneurs to register with state agencies for the appropriate certifications and licenses. You may also have to take into account the requirements imposed on your operations by the federal and local governments. Understanding what paperwork has to be completed and what permissions have to be obtained can be very difficult without experienced assistance.
Contractual challenges can manifest early
Clear, comprehensive and legally correct contracts are essential if you want your business to thrive. You need contracts with everybody from the people who access your website (“terms of service” contracts) to nondisclosure contracts with your employees or contractors that protect your intellectual property. While there are plenty of “DIY” models out there on the internet, they often lack specificity and may not be valid under state law.
Securing financing can be hard to do for startups
Every business needs to have some capital on hand in order to keep operations moving smoothly. Entrepreneurs need to have a well-developed business plan if they want to attract potential investors or secure other kinds of funding.
When you’re forming a new business, you don’t have to go it all alone – and you shouldn’t. Seeking legal guidance can help you get off to a great start.