Common Mistakes to Avoid When Starting Your Business
Branching out on your own and creating your own business is no simple task. From business plans to filing legal paperwork, the process of starting your business from scratch is rife with opportunities to slip up. But, with our help, you can avoid these common mistakes when starting your business.
At Dowden & Smith, our business attorneys help you avoid the pitfalls many business owners forget about when first starting out. Contact our office today to schedule a consultation and protect your business.
A common mistake made when starting a business is improper filing. Should you file as an LLC or an S corporation? What about a C corporation or a partnership? There are numerous classifications you can file under, and picking the right one is crucial for your business’s future. Improper filing can greatly affect the taxes you owe, your future business dealings, and the protections offered to you as a business owner.
Along with improper classification, forgetting to file with local entities is another common mistake you should avoid when starting your business. You should be aware of licensing requirements for both the city and parish your business is in. A qualified Louisiana business attorney will be your best option to avoid common mistakes when starting your business.
[Related: Why You Need a Real Estate Lawyer]
Forgetting to Protect Intellectual Property
Picking your company name, getting a logo, and registering any trademarks are essential steps to creating your own business, but many business owners make the common mistake of forgetting to protect their valuable intellectual property. If you leave your intellectual property unprotected, your competitors may be able to use your name, or contractors could use your proprietary information for their own gain. When you’re starting a business, protecting your intellectual property is essential.
Protecting your intellectual property doesn’t stop at your name and logo – it also means having legally sound NDAs drafted. NDAs, or non-disclosure agreements, are crucial to protect your business. You may disclose certain information during the hiring process when working with outside contractors or as part of an internal project.
If you don’t have NDAs in place and signed, anyone who receives information about your business could go to a competitor or start their own business and gain a competitive edge. Whether you ask employees, contractors, or business partners to sign them, an NDA is a helpful tool to prevent your proprietary information from ending up in the wrong hands.
By working with the business attorneys at Dowden & Smith, you can avoid these common mistakes when starting your business. Schedule a free consultation when you call 337-238-2800 today.
Skipping Partnership Agreements
Starting a business with your friends or others you trust seems like it’ll make everything easier. For that reason, many people skip written partnership agreements in favor of handshake deals when working with people with whom they are already familiar. Those undocumented agreements can lead to costly expenses and unnecessary tension if things go awry, whether from a partner leaving or an internal dispute.
You can avoid this common mistake when starting a business by hiring a business lawyer to draft a partnership agreement. These legal documents will help all partners know exactly where they stand in terms of finances and responsibilities. When starting your business, you should have a legal partnership agreement in place as early in the process as possible.
[Related: Powers of Attorney in Louisiana]
Protect Your Business & Avoid Costly Mistakes with Business Attorneys
Whether you need help obtaining the proper licenses or drafting partnership agreements, you can trust our Louisiana business attorneys to guide you through the process and avoid common mistakes when starting your business. Our team at Dowden & Smith is experienced and compassionate. We know your new business is extremely important to you, and we’ll deliver exceptional legal advice you can rely on. Call us today at 337-238-2800 to schedule a free consultation and get your business started.