Starting a business might seem like it just involves coming up with a good product or service people want and then making it available to sell, with everything else falling into place. However, in reality, starting a business is probably the closest many people come to being wrapped up in the most legal activity of their careers and business lives. If set up incorrectly, a business formation can become a real headache and problem, limiting a business from growing properly as well as operating correctly without penalties or regulatory problems.

Planning Ahead Makes a Big Difference

Business formation is often a choice of matching where a business is now in terms of legal entity type and where it will be with growth. While businesses can always scale up, setting up their formation correctly from the beginning saves a lot of trouble down the road and prevents being prematurely blocked out of business opportunities.

Bring in the Right Help Early

Once you have decided to form an entity or business, you must decide what type of entity you wish to form. There are two main options: a corporation or a limited liability company (LLC). Filing the appropriate Articles with the Secretary of State forms the entity. The details of the business are explained in an Agreement among the members of the company, rather than stipulating it on the Certificate.

There are other options such as general, limited or family limited partnerships. The best course of action is to discuss all options with an attorney to determine the best entity for you and your partners.

A good business attorney is essential, both for identifying the requirements for the correct business formation as well as making sure both legal and tax criteria are met. While the simplest formation can be a small matter of just securing a local business license and a business banking account, it also leaves the business owner personally liable. On the other hand, taking on too big of a formation without being ready can become a bit of a struggle with regulatory agencies intended to license and review business forms that become their own legal entities, like corporations.

Situated in Shelbyville, Tennessee, the Law Offices of Bobo, Hunt & White can help local businesses initiate their formation path correctly the first time, accommodating growth as well as starting off the company on the right foot without common mistakes. Remember, a bit of prevention can be worth 100 times the cost in avoidance of damage control after the fact. Focus your business startup energy on growth and securing new opportunities, not cleaning up legal and taxation errors. Call Bobo, Hunt & White for your business entity formation needs in Tennessee.

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