Business Startup

The First Meeting

During this meeting we will discuss your business plan, business strategies, and your expectations of Welch Law. The main legal points we will cover in this meeting include:

• Type of Business Entity - There are four main categories of business entities. Which one is right for your new business depends on a number of factors.
  

  ---

  • Sole Proprietorship - Perhaps the most basic business entity, because there are no formal requirements. This business entity is owned and run by one person, and there is no legal distinction between the owner and the business. In other words, it is just you. Some sole proprietors will give their business a name by filing a fictitious name registration, but it is important to remember that a fictitious name offers no liability protection.
    

    ---

  • Partnership - A partnership is a business entity where two or more people have come together to accomplish some business function. Typically, the partners share in the responsibility, profits, losses, and liability. Care should be taken with any business relationship, because it is rather easy to create an unregistered (we call these 'informal') partnership. Registered partnerships are less common since the advent of the limited liability company ("LLC") for several reasons.
    

    ---

  • Limited Liability Company ("LLC") - Considered "pass-through entities" the LLC is a popular entity choice for many small businesses because of their flexibility and limited liability protections. The LLC is controlled by state law and the members (or, owners) enter into an operating agreement that details how the LLC will operate. LLCs can be taxed as a sole-proprietor, a partnership, a S-Corp, or even a C-Corp.
    

    ---

  • Corporation - Because the entity is separate and distinct from its owner, corporations afford their owners the most protection from liability. On the other hand, corporations tend to be more heavily regulated by state law and require frequent meetings and reports. Corporations are usually better for large companies or those seeking major investment capital such as seed or angel investments.
    

    ---

• Liability - Liability comes in many forms, this is even more so in the case of business liability. Helping you understand these liabilities and how you can protect against them is vital to helping you grow a successful business. (Note: We do not sell insurance or give legal advice about insurance. However, we do educate our clients about some commonly known insurance products so they can discuss them with their insurance advisor.)
  

  ---

• Local, State, and Federal Laws - Impact nearly every business. Knowing the laws and regulations that control your new business can save you a lot of money from unnecessary penalties and fees for failing to comply with legal requirements. We encourage our business owners to review city and municipal regulations in addition to the state and federal ones.
  

  ---

• Contracts, Employees, and Other Considerations - Legally forming your business is a great first step in protecting you from liability, but as your business grows you will be introduced to new liabilities and legal issues daily. Understanding the difference between an independent contractor and an employee, whether a non-compete agreement is enforceable, whether you are legally permitted to file a materialmens lien, and the terms of your lease agreement are all critical to your success as a business owner. We help you foreshadow these and other issues; then we help you build a plan and the legal documents to protect your business.
  

  ---