When you’ve decided to take the plunge and start your own business, you’re probably overwhelmed by the amount of things you have to know. It can be a major headache to figure everything out, but it’s always worth in the end because you’re a business owner and proud to say it. When you make the transition to becoming a business owner, it can be overwhelming to make right decisions when it comes to your business, and sometimes mistakes are made that might come back to bite. In this blog, we’ll discuss the few common mistakes many business owners are guilty of and how to avoid them. If you’re in the Springfield area and searching for a dedicated business attorney, then you need to contact The Law Office of Brian Loomis. Offering many years of experience and excellent legal advice, your business will be in capable and understanding hands when you partner with Brian Loomis. Give him a call today!
Not Limiting Your Liability by Forming an LLC or Corporation
Starting a business is a brave but risky choice, and it can quickly backfire on you and your partner or associates if you’re not careful. Life savings, a home, a dream car, and other collateral is placed in the business, and failing to protect yourself as the owner leaves you open to issues down the road. Protect yourself and your employees by forming an LLC or corporation. This should be one of the first actions that is taken when forming a business. Choosing to form an LLC or corporation is never a bad idea and if something goes wrong in the business, you can rest in the fact that you won’t be required to pay for it out of your own personal pocket.
An LLC or corporation forms a shield over your business, and places any blame or liabilities on the business, not its owners or employees. If you fail to create an LLC or corporation, the bank can seize your home, car, bank account, and anything else of value to pay back creditors and loans that have been taken out to finance the business, its buildings, or products. If you’re the sole owner of your business, it’s advised by many successful business owners and attorneys to establish an LLC or corporation as soon as the business is started to protect everyone involved.
Not Having a Formal, Signed Agreement Between Owners
Even if you would take a bullet for the best friend, coworker, or family member that you went into business with, it’s best to have a written and formal agreement signed between the parties that share ownership in the company. People change and disagreements can happen, and even if everyone agrees that nothing bad will ever come between them, sometimes that isn’t always true and can come back to bite you. A well-written legal document that every party has agreed upon will resolve many fights and issues, and if there is a true falling-out, will protect you and your business in a court of law. An agreement made between all of the owners will also ensure that everyone understands the expectations that come with the business so everyone will be on the same page. Make sure that the document is as detailed as it needs to be and formalize the agreement between everyone who has a stake in the company. You’ll thank yourself if there is a hiccup between partners one day.
Not Hiring a Lawyer for Legal Guidance
Lawyers aren’t only needed if you need to get out of too many traffic tickets. A business attorney will be able to foresee many mistakes before they can happen and advise you on business dealings and file correct legal work on your behalf. There are many bogus websites on the internet that promise free advice that is the same as a lawyer’s, but having a trusted lawyer to go to with problems and legal trouble will save you time, frustration, and money in the long term. A seasoned business attorney who has experienced many different situations and business plans will steer you on the right path and help your business to thrive. He or she will also be able to take care of confusing legal paperwork and make sure that it’s correct and filed properly. Your business attorney can focus on the legality of your business, and you can focus on running it.
Don’t make mistakes that could trip up your business plan and growth for years. For one of the best in the business and located in Springfield, contact The Law Office of Brian Loomis today. He’ll make sure that the legality of your business is in tip-top shape so it can grow and thrive the way that you intended when you decided to start your company. Call him today for an appointment!