Starting a Company (Part 1)

When starting a company to run a business, there are a lot of issues to deal with and often not enough time and resources to handle everything in the perfect way. This conflict almost always exists when starting a small business. However, there are some administrative and legal matters that are a must do. Here is a quick checklist of the most important ones.

Come Up with a Name for Your Company and Product/Service. It is important to come up with a name for your business that is not already being used by anyone else in the areas where you will conduct your business activity.

You can check with your state corporation agency and your local county or city’s business licensing office to confirm.

 

Equally important is that if your company is being created to sell a product or a branded service, you also need to decide on a product or service name and check to make sure it is not already being used in the industry in which you are going to be participating in.

This too can be a violation of law- called trademark laws. For some businesses, a branded name is more important than others. And, if you are planning on distributing your product and service to more than just the local area, then you need to really make sure your trademark is available for your use.

You can run a search at the CIPC website or pay for a search to determine whether there are any issues.

Create a Legal Entity for the Company. Before conducting any business activity, you need to create either a corporation or a limited liability company to operate the business. The biggest reason for this is to protect you and your personal assets from being lost due to business obligations and problems that may arise in the future. Given the statistics in this country where small business disputes and lawsuits are rising significantly, the small expense to incorporate or form an LLC is well worth the protection.

In Starting a Company – Part two we will discuss the Complete Governance Organization of a New Company.