Your Next Adventure: How to Successfully Start Your Small Business
Taking your idea for a new business and growing it into a successful small business is a daunting task. You know WHAT YOU DO, but you may not know all of the steps needed to set up a business, protect its assets and operate on a daily basis. Let’s take a look at the key ingredients you’ll need to set up your new business not only to grow, but to thrive.
1. Create a business plan
A business plan is a formal written document laying out the goals of a business, methods for achieving those goals and the time-frame in which those goals should be achieved. It’s a way to take ideas and concepts you’ve developed and convert them into tangible, measurable things.
2. Identify any licenses or permits you’ll need to operate your business
Depending on the industry in which your business is located, you may need certain health, safety or operational permits from local, county and state governments. Operating without the proper permits puts your business in violation of laws and ordinances and exposes it to fines and penalties from the Commonwealth.
3. Entity selection, ownership agreements and article drafting
In order to build a good foundation for a new business, having the right documents and agreements in place is essential. One of the most important elements is entity selection, wherein we help you decide what legal structure your business will operate as:
- Sole proprietorship – An unincorporated form of business with one owner
- Partnership – An unincorporated entity (either U.S. or non-U.S.), with at least two owners
- C Corporation – A corporate entity (either U.S. or non-U.S.), organized in a single state
- S Corporation – A U.S. corporation whose ownership is in the form of stock
- Limited Liability Company – A hybrid entity treated like a corporation for limited liability purposes, but, for tax purposes can choose to be taxed either as a corporation, partnership or disregarded entity
An operating agreement and articles of incorporation specify how the business be managed and create the framework it will follow in its daily operations.
4. Register your business with the Commonwealth
Registering your business allows you to hire full-time employees and pay them in accordance with Kentucky laws. When you register your business with the Commonwealth, you’ll receive a state identification number that allows you to route state taxes on the employee’s behalf.
We’re with you every step of the way
Not only can our knowledgeable attorneys help during the setup process for your business, we’re here for you once your business launches. Our corporate compliance attorneys help you navigate federal, state and county regulations, spanning many areas, including employment, taxes, intellectual property, insurance and filings. For every step of your business journey, Mattingly Ford is your legal partner.