Starting your own business is both exciting and stressful. There’s a lot of planning that needs to happen before you can start offering your services and products to customers. And one of the most essential steps you need to take is making sure your business is set up correctly from the beginning. Unfortunately, it’s easy to make mistakes if you’re not careful. Here are some of the most common mistakes New York business formation attorneys want you to avoid.
Not Doing Thorough Research
Unfortunately, many business owners jump in without doing the necessary research to make sure their business is sustainable in the long term. This often results in premature closures and puts strain on both personal and business finances. Before you do anything, take your time and research everything you can about your business.
Consider who your target customers are, your competition, the demand for your products and services, and figure out how you’ll market those products and services. The more information you can gather before you open your doors, the better off you’ll be.
Trying to Set Things Up on Your Own
Creating a business means taking care of a lot of legal requirements. While it’s possible to do it on your own, doing so often results in mistakes that can cost you serious money in the long run. Instead of trying to do everything yourself, partner with an experienced New York business formation attorney from the beginning. They’ll help you get everything set up so you can start serving your clients and customers faster.
Choosing the Wrong Business Formation Type
The right business formation can help you save on your taxes and protect you from liability, but some formations will be better suited to your company than others. And choosing the wrong one could expose you to enhanced liability and may result in you paying higher taxes than you should.
Your New York business formation attorney can help you decide on the right formation for your short and long-term goals.
Not Separating Personal and Business Finances
When you’re running your own business, you need to have separate business finances. That means opening a dedicated business banking account, having a business credit card, and only using those accounts for qualifying business expenses. If you mix personal and business finances, it can make filing your taxes a lot harder. Worse, it may increase your chances of being audited by the IRS.
Not Using Written Contracts
Holding other businesses accountable for their actions when you’re partnering with them is incredibly difficult if you’re relying on spoken agreements. You’ll want to have written contracts in place for any agreement you enter into. That means creating contracts for your suppliers, employees, contractors, and more. Your New York business law attorney can help you create any necessary contracts.
Avoid These Mistakes With Help From a New York Business Formation Attorney
These are just a few of the common mistakes business owners make when they’re getting started. But avoiding them is easy. You just need to work with an experienced New York business formation attorney from the beginning. Contact us today to see how we can help you set your business up for success.