Steps to Take in Starting a Business
The anticipation and excitement of starting a business can make it hard to focus on everything you need to do to get your new company off the ground. But the steps you take in starting a business are critical to laying a solid legal foundation for a successful beginning and future growth and success. While the nature of your business determines some of the early tasks, there are steps that are common to most businesses. This discussion provides an overview of primary steps that are typically part of setting up a new business.
Step 1: Choose the Name for Your Business.
Naming your business is a task that requires careful attention. Your business name will be the identity for your new company and the basis for the brand you establish and build. Checking to make sure you can use a specific name and then registering the name are essential. If you don’t check a name properly, you can face legal consequences if your name is the same as or similar to another business.
A Google search is not sufficient to find out if the name you want is already in use. You need to check the Arizona Corporation Commission database and the trade name and trademark database of the Arizona Secretary of State. In addition, checking the trademark database of the United States Patent and Trademark Office helps determine whether anyone has filed a trademark using your business name or something similar. In some cases, checking for potential copyright infringement is also a good idea.
If you plan to have a website, you should delay purchasing a domain name until you are certain you can legally use the chosen name. The same caution holds true about ordering business cards, signs, or anything that has the business name on it. Before you start spending money on a specific business name, make certain you can use the name — and that it’s a name you will be happy with for many years to come.
If you rely on a business law attorney to help you start your business, your lawyer helps you check whether a specific name can be used and lets you know when it’s safe to start using the name. Getting help from a business law attorney is the best way to ensure your chosen business name won’t create legal problems in the future.
Step 2: Determine and Establish the Legal Structure For Your Business.
Determining the best legal structure for your new business is one of the most important decisions you make. The choice of business entity (sole proprietorship, partnership, Limited Liability Company / LLC, or corporation) determines taxation and legal liability issues for the business and for you personally.
After choosing your business structure, the formation documentation for your business must be properly completed and filed. It will be examined for approval by the Arizona Corporation Commission. If approved, you can proceed with additional legal requirements that apply to setting up your business. If the ACC rejects your formation documentation, you need to follow the rejection instructions and resubmit the documentation.
A business law attorney helps you determine the most suitable structure for your business and then assists with navigating the necessary requirements for establishing the structure. Counting on a lawyer ensures that these steps go smoothly.
Step 3: Identify All Applicable Regulatory and Compliance Requirements.
Depending on the nature of your business, other specific regulatory and compliance requirements may apply. Additional filings may include the Arizona Department of Revenue (transaction privilege tax reporting), U.S. Internal Revenue Service (employer identification number / EIN), and other business filings (such as those for a state or local business or occupational license and local tax) may be required.
Other regulatory and compliance requirements apply, based on the nature of your business. Your lawyer helps you identify all applicable legal requirements at the federal, state, and local level, and explains what you need to do initially and on an ongoing basis to comply with all legal requirements that apply to your business.
Step 4: Stay Attentive to Ongoing Business Legal Concerns.
When you own and run a business, being aware of legal concerns is an ongoing responsibility. Staying informed and alert can prevent problems and enable you to mitigate issues early on. Establishing a relationship with a knowledgeable business law attorney during the process of setting up your business helps you have access to ongoing legal advice when you need help addressing a legal matter that affects your business.
Schedule a Free Consultation With an East Valley Arizona Business Law Attorney
In our business law practice at Peterson Law Offices, we help new Arizona businesses establish a solid legal foundation by checking the business name, explaining business structures, filing formation documents, and addressing other initial requirements for a new business. We also provide access to ongoing business counsel. We know that small businesses, whether new or established, often do not need a full-time lawyer but do need reliable, responsive legal counsel throughout the life cycle of the business. Our goal is to help your business succeed, grow, and thrive, while minimizing legal problems you encounter and finding the best solutions for the issues that do arise.
Your initial consultation is always free of charge. We welcome inquiries from clients throughout the East Valley, including Queen Creek, San Tan Valley, Gilbert, Mesa, and Chandler. Schedule your free initial consultation by calling 480-878-5998 or using our online contact form.
