Asset Protection: Four Must-Haves for Your Startup
Starting up a new venture can be one of the most exciting opportunities for any eager and ambitious individual. Relentlessly pursuing a desire to be an entrepreneur is very rewarding, but can also be at times very surprising in some unfortunate ways. Every year, new start ups end up closing their doors because of a lack of serious due diligence when it comes to protecting their assets from a variety of pitfalls. Here are four must haves to consider for your new start up business.
Get contracts and agreements in place
Every new enterprise needs to ensure that they have created a series of contracts and other legally binding documents that can be used when selling or buying services. Whether it’s hiring contractors or buying goods and services from vendors, make sure that you keep a record of all your signed contracts. Invest in a user-friendly contracts management system. That way you have an electronic copy of every document you sign. Use a website like findlegalforms.com to get copies of templates you should use for a variety of contracts and agreement letters.
Form a legal structure suitable for your business needs
There are a host of business structures you can consider when you starting your new venture. Whether it’s an LLC, sole proprietorship, corporation or a nonprofit, make sure you do your due diligence to find the best legal structure that will help you maximize your profitability and avoid excessive taxation. Sometimes your home state may not be the best state to incorporate, if that is the case do your research and find out which state would be best for you.
Hire an accountant
When starting up a new business, never attempt to do business accounting on your own unless that is your expertise. Hiring a highly qualified yet affordable business accountant will help you manage your expenses, maximize tax savings and benefits. They will also help you navigate burdening tax laws and regulations that might eat away at your hard earned business assets. The regulatory environment is constantly shifting and changing. Get with the right accountant to take advantage of a variety of tax write-offs and deductions.
Patent your products and services
Many people who start new companies have created some pioneering technologies that have the potential to make millions, if not billions of dollars. However, with one slip of a secret and a lack of putting into place a patent, many people suddenly lose out on a momentous opportunity to become wealthy. If you have created something that is unique, immediately speak with a lawyer to get your products and or services patented. It is important to fill out patent forms and get your products protected from thieves looking to exploit your ideas.
There are many more strategies new business owners should consider when looking to protect their assets. In the end, do your due diligence and use experienced and knowledgeable professionals to help protect your assets from burdening government regulations, thieves and others who pose a threat to your fledgling start up business.
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Category: Business
