4 Mistakes to Avoid in the Corporate Formation Process

Forming a new company is an exciting time. Unfortunately, it can be easy to get caught up in the enthusiasm about a new venture and forget some crucial steps to build a solid foundation for the new business. To make sure you do not accidentally overlook any critical details while creating your new business, we have listed four common mistakes you should avoid in the corporate formation process and their solutions.

Mistake #1: Failing to Consult an Attorney

When you decide to form a business, your first thought probably is not that you need to hire a business attorney. However, it should be near the top of your to-do list. By hiring a business attorney, you can ensure that you are doing what is necessary to create a legal entity. Plus, business attorneys can help you with any contracts you may need to create or sign as well as answer any questions you may have about which business entity would be best for you legally.

Solution:  Hire a qualified and reliable Florida business attorney early in your process.

Mistake #2: Ignorance of Business Entities

There are several types of business entities. If you have partners, each business entity has different benefits and obligations. Even if you choose one business entity, you can adopt features of others if they suit your situation. It is important to investigate which one would be best for you. In order to make this decision, you may need to talk to your attorney and possibly an accountant.

Solution:  Take the necessary time to educate yourself on business entities before you choose one and incorporate.

Mistake #3: Failing to Obtain Business Licenses

Your new business may require business licenses from municipal, county, and state authorities. Although the information is probably all out there on the internet, sometimes government websites can be a bit challenging to navigate. An attorney can help you navigate business licensure requirements, and ensure that you get the proper and necessary business licenses.

Solution:  Verify with us that you have the necessary business licenses.

Mistake #4: Failing to Document Agreements

Aside from filing your incorporation documents and getting your state and local business licenses, there are still important documents that should be completed to document your agreements. For example, if you have a business partner, you will want to have a partnership agreement. Likewise, if you need to rent space or equipment, you will need leases or financing agreements.

This is another area where a qualified business attorney can help. Because they have experience, they can identify what contracts you will need to lay the foundation for your new business.

Solution:  Consult a business attorney about the contracts you need to document your agreements.

It is essential to have a qualified business lawyer helping you throughout the process of creating your new business. By hiring an experienced lawyer, you can be certain that you will do everything possible to lay the foundation for your new business. If you are in Florida, J. Muir & Associates can help. Our legal team is ready to answer your questions and help you with your new business. Contact us here or give us a call today at 786.533.1100.