It is more tempting than ever to handle the legal set up of a new business yourself. Online forms. Web-based business entity registration. You have enough startup costs, so why not save money on legal fees now when your business is small. You can always hire a lawyer later to fine tune the details—right?
“In the decades that I’ve been counseling and coaching business startups I see people make this mistake over and over,” says Peter Ancone, self-employment blogger and book author and lecturer on self-employment. “Setting up a business is more than registration. You need to know what kind of business entity best fits, and will continue to fit, your business model in the future.”
The corporate entity documents you file will define your enterprise as it grows. Whether it’s an Operating Agreement for an LLC, or a Charter and Bylaws for a Corporation, business startups often make their first mistake by trying to handle these steps themselves.
“When this happens, the owner manager of the startup doesn’t realize what went wrong until it’s too late. These business governance documents will set the procedures, and parameters, for running your businesses.”
If you plan to open a new business or become self-employed, contact (215) 567-1530. He practices in the firm’s Business Law and Commercial and Civil Litigation practice groups and is admitted to practice in both Pennsylvania and New Jersey.