When people decide to start a new business, they usually have a great idea and some money to invest in the enterprise. Some people opt to start the business by themselves or with family members, while others have partners or other investors who will not be involved with the day-to-day affairs of the business.

The laws that apply to start-up businesses differ based on the specifics of the situation, and even business people who decide to go it alone have options to protect themselves from personal liability for business debts and obligations. For this and other important reasons, you most likely will need a lawyer for your startup.

CONTRACTS. Most businesses execute contracts for space, services, and supplies. Businesses often have agreements between partners, investors, and employees. It is important to get it right so you don't end up in court.

REGISTERING, LICENSING, AND PERMITS. Some business entities are required to register with the state in order to be recognized. Even businesses that are not required to register may be required to obtain licenses or permits.

FORM OF BUSINESS. The choice of business form (i.e. sole proprietorship, partnership, LLC, or corporation) often dictates the legal responsibilities and potential liability of those involved in leading the business, as well as the manner in which it may operate. For example, choosing the wrong entity may make you personally liable for the wrongs of employees or partners.

MULTI-STATE BUSINESS. The preconditions to forming and conducting a business entity in one state may not be accepted in another state. If you are not careful, the protections you have in your home state of operations may be lost if you do business in another state.

CAPITAL. Businesses need to raise money, keep records of income and distributions, and behave in a fiscally responsible manner. Different business entities may require different procedures for raising capital and making distributions.

VARIETY OF ENTITIES. Although there are essentially five basic business entities, there are other options within these entities that determine things like double taxation and liability for the acts of partners.

AUTONOMY. With many business entities, the things you don't decide are decided for you. Most states have adopted uniform laws that fill in the gaps for business entities where their charters, bylaws, and other organizing documents are silent. You may be subject to a whole set of laws and regulations that you don't even know exist.

TAXES. Different business forms provide different tax advantages and disadvantages. The only thing more crucial to a new business is liability.

LIABILITY. Different business forms provide different protections and risks to the business owners/investors. Personal liability means that your business puts everything you own at risk. A lawyer can help you avoid this situation or minimize your risk. Knowing about your personal liability, and reducing the risk that your business may devastate the economic well-being of you and your family, is well worth a visit to an experienced lawyer.

In most cases, you're going to need the services of a lawyer for your startup, perhaps for tax services or employment law compliance. Whatever the reason, make sure you contact the right lawyer for your needs. You can get in touch with us to discuss your needs and to learn how to set up a business that maximizes profits and minimizes liabilities. Give us a call at 253.858.5434 to see how we can be of service. We represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via Skype or FaceTime.