Starting a business in Louisiana can be a complex process, so it is important to have knowledge and guidance to help establish a strong foundation to ensure the future and success of the business. There are a lot of important decisions to make when first starting a business, not the least of which is selecting the type of business form that is best for the business that may be a sole proprietorship, partnership, corporation or limited liability company. The laws associated with different business forms, especially pertaining to personal liability, tax liability and control of the business, differ.
In addition to business formation, one of the important considerations to keep in mind early on when starting a business are contracts of which there may be many. There are a variety contracts that a new company may need, including contracts for space, supplies and services, as well as contracts between partners, employees and investors. Careful attention to contract formation can help avoid contract disputes down the road.
It may also be necessary to register with the state or obtain licenses and permits, and new business owners should be familiar with the requirements in their state. Some states also require strict conformity to state laws, and it is important to be familiar with those laws.
In addition, when formation documents do no address a specific concern, uniform state laws may fill in what is left unaddressed so new business owners should be familiar with these potential situations. It is also commonly necessary to raise funds and keep proper records and accounting of money raised and distributed.
Starting a new business can include taking on certain risks, which is why it is useful to be familiar with legal tools that help protect the foundation, future and growth of the business. Business owners should always be familiar how to select the legal structure for their business and how to get it started off on sound footing.
Source: SmallBusiness.FindLaw.com, “Top 10 Reasons to Contact an Attorney Before Choosing a Business Form,” accessed on Oct. 31, 2016