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LEGAL STEPS EVERY SMALL BUSINESS SHOULD TAKE
By Dean Swanson, volunteer Certified SCORE Mentor and former SCORE Chapter Chair, District Director, and Regional Vice President for the North West Region A s an entrepreneur, you are a special breed. Not afraid to dream big and take risks, you also know that a dash of common sense is the key to the best job in the world: owning your own business. In this column I will share an example of the resources that are available on a given topic. I have chosen to use the topic of legal steps that every small business CEO should consider and then provide a resource article for each step as they traverse these challenges for their business. Think of it as your legal toolkit. Before turning your inspiration into reality, make sure you stay grounded by following these simple steps to launch your small business, boost your sales and limit your liability. 1. Decide on a Business Type The type of entity you choose for your business-- whether it’s a sole proprietorship, partnership, limited liability corporation, or s-corporation--determines how you file taxes, sets up legal protections, and most importantly limits your liability. Incorporating your business also records these details with the government. Learn more by going to this article: https://www.score.org/resources/mat- ter-type-your-business-entity 2. Protect Yourself With a Business Prenup Launching with a partner? A buy-sell agreement protects everybody from situations that could complicate ownership. If one partner wants out, gets divorced or passes away, the buy-sell agreement can protect against sticky situations when ownership shares transfer to the wrong person. Learn more by going to this article: https://www.score.org/resources/covering-your- back-buy-sell-agreement
3. Map Out a Corporate Blueprint Corporate bylaws specify the structure for your small business. Will you have a board of directors, shareholders or other company officers? Corporate bylaws get these ducks in a row and specify the rules and meeting schedule. It’s basically the blueprint of your company. Learn more by going to this article: https://www.score.org/resources/de- fine-your-structure-corporate-bylaws 4. Draft a Solid Business Plan Business plans wear two hats: they provide you with an outline to help you stay focused on your small business goals and strategies, and they can be used to present to banks and investors when you need to drum up some financing. Learn more by going to this article: https://www.score.org/resources/developing-strate- gy-business-plan To read more, visit SCORE’s website at https://bit.ly/3lC7k6d
| Advantage Magazine 18
June 2022
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