Starting A Business

Starting a Business? Protect Yourself!

So, you’ve decided to start your own business, congratulations!  You’re on your way to a fantastic experience as you build a successful enterprise.  Here are a few key tips, documents, and warnings from commercial lawyers and someone who started their own $10 million dollar software company.

  • Protect Yourself. Business is a risky proposition, and starting your own enterprise can put you at tremendous financial risk.  Fortunately, the law provides a way to protect your hard work and safeguard your personal property and other assets should anything go dramatically wrong in your business.  The entity I’m describing is a corporation, or limited liability company.  Both of these constructs allow you to run a business but shield yourself from liability.  It’s important to do several key things:
  • Corporate ‘formalities’: You can’t start a corporation and then pretend it doesn’t exist, you have to run your business and maintain what commercial lawyers call “corporate formalities” – meaning you have to hold regular managers or shareholder’s meetings, and in all ways act as if it’s the company doing business, not you.