122: Starting a Business With the Legal and Financial Basics

5 Tips for Laying a Strong Legal Foundation for Your Business

Starting a business can be an exciting and rewarding experience, but it's important to make sure you're laying a strong legal foundation for your company. In this episode, Lori provides valuable advice on the legal aspects of starting and running a business. Here are five tips to keep in mind:

1. Choose the right business structure: There are several types of business structures to choose from, including sole proprietorships, partnerships, LLCs, and corporations. Consult with an accountant to determine the best option for your business.
2. Register your business name: It's important to register your business name to ensure that no one else is using it. Speaker 2 emphasized the importance of trademarking your business name to protect your brand.
3. Obtain an EIN number: An EIN number is used to identify your business for tax purposes. Speaker 2 cautioned against paying for an EIN number, as it can be obtained for free from the IRS.
4. Keep personal and business finances separate: It's important to keep your personal and business finances separate to avoid any confusion or legal issues down the line. Speaker 2 recommended obtaining a separate credit card for business purchases.
5. Consult with professionals: It's crucial to consult with professionals such as accountants and business attorneys to make informed decisions and ensure a strong legal foundation for your business.

Starting a business can be overwhelming, but with the right legal foundation in place, you can set yourself up for success. By following these tips and consulting with professionals, you can navigate the legal aspects of starting and running a business with confidence.