Starting a new Business
Starting something new can be difficult for anyone, especially when it seems like everyone else already has it figured out. Turning your passion, your hobby, or your skills into a profitable and successful business is among the most challenging endeavors. I found myself faced with a choice in my life, whether to start my own company, or continue to work in a secure environment. After much deliberation, I felt that I had to do what would provide the best opportunity for myself, my family, and the community, and thus, Rune Law was born. It was not an easy decision, and would not be an easy process, but like many things, you take it one piece at a time.
Many of my clients have found themselves in a similar situation - trying to navigate taking that first step towards starting their new business. It can be daunting to figure everything out on your own. Taxes, filings, operating agreements, votes and meetings. All of these things that you’ve heard mentioned, but you have not had the time to explore. Each aspect of starting a business deserves a significant amount of attention and respect - but that does not mean you have to do it all yourself! Take advantage of the professionals in your life who know each of the important aspects of a business. Your financial advisor focuses on the money, your attorney focuses on the law, and your accountant focuses on the taxes; this leaves you ample opportunity to focus on growing your passion into something more.
From the legal perspective, I often have clients operating a business without any paperwork in place. Often times, what this creates, whether this was their intent or not, is a sole proprietorship or a partnership. In both of these forms of business - (and they are businesses) - you, as the owner, do not have any liability protection. If something goes wrong, your business assets, the money you have earned, the money you have invested, as well as your personal assets could be at risk! Liability is often a major concern for new business owners, something that can be addressed with proper legal planning. An operating agreement is a formation document that outlines the rules of a Limited Liability Company (LLC) and is often the first step in protecting your wealth from potential creditors. It can provide protection to the owners, both from the company’s liabilities, as well as each others’ individual liabilities. It also can provide legacy planning - ensuring that your interest in the company that you have grown will pass to whom you want.
If you are thinking about starting a business, or if you already have a business and are looking to protect yourself for unnecessary liability, then let’s have a conversation about what some simple documents, proper planning, and respect for your company can do for you.
- Nick
