Starting a small business can allow you the freedom to work for yourself and to do something you love. Unfortunately, starting a small business can also have significant financial and legal risks. Before you decide to start operating your own business venture, you need to ensure you are making an informed choice and that you do everything possible to protect your investment and make your business a success.
The Law Offices of Mike Ross is dedicated to helping business startups in San Jose and throughout California grow and thrive. Our attorneys can provide comprehensive advice on your options and obligations when starting a small business. From help choosing the right business entity to information about your obligations as an employer and your obligations to the IRS, our attorneys can provide you with the advice you need to maximize your chances of business success.
Should I Start a Small Business?
When deciding whether to start your own small business, consider the following:
- Do you have a business plan? A business plan will be necessary to secure investors for your organization so you have startup capital. It will also serve as the blueprint to allow your company to become profitable. A business plan should provide specific details about the operational goals of your company and a plan for your business to achieve profitability. The more specific the goals and the steps you will take to achieve them, the greater the chances of success.
- Do you have a target market? You need to understand whom your product or service will be provided to. The product or service you offer must add value and you must have a plan in place to reach customers who would be interested in what you have to offer.
- Do you have the correct legal structure? Businesses operate under different types of legal entities including S-corporations, C-corporations, partnerships, limited liability partnerships (LLPs), sole proprietorships and Limited Liability Companies (LLCs). Each different business structure has its own requirements and its own advantages and disadvantages. For example, operating as a sole proprietorship is the simplest way to form your business but it is also the one that brings the most personal risk. You are responsible for the debts and liabilities of your company if you operate as a sole proprietorship. A C-corporation and S-corporation can provide you with the most protection from liability but certain steps are required to form a corporation.
- Are you prepared to comply with all legal requirements? You must comply with IRS rules, with zoning rules, with licensing requirements and there maybe more, to operate your business.
These are just a few of the many issues that you need to consider when deciding whether to start your own small business. Let the Law Offices of Mike Ross help you to make informed choices with business startups in San Jose so you can get your business started on the right path to success.
Mike Ross
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