Creating a business can be a harrowing almost religious-like experience for the intrepid entrepreneur. Most entrepreneurs often realize that they need a business plan and sufficient capital to begin their venture, but routinely overlook the proper formation and maintenance of their business entity. Oftentimes, business lawyers are contacted for help after the owner has run into trouble with the Texas Secretary of State, Internal Revenue Service, or local county filing rules. It is always in the best interest of a budding or seasoned entrepreneur to involve a business lawyer in the formation of the company initially to severely reduce the likelihood of expensive tax, business, and legal troubles in the future.
There are some key questions that a business owner must think about when starting a business:
- Who is involved?
- Who will be the owners?
- Who will govern and manage the entity?
- What type of business will the entity conduct?
- Where will the entity conduct business?
- When will the entity operate?
- Why is the entity being formed?
- How will the entity operate?
If the prospective owner can answer these questions concisely it makes it much easier for the company to become profitable, maintain a high level profit throughout its’ operations, and allows the lawyer to effectively advise the client about present and future business concerns.
As always, this is not legal advice. You should seek the help of a licensed attorney before acting on any legal matter.