Critical Legal Advice to Heed Before Starting a Business in Arizona
Starting a business is one of the most exciting things you can do. You are likely bringing a dream to life, and you are starting out on your own, making your own fortune in the world instead of working for someone else. Getting the right start for your business is critical to its long-term success. Start off on the wrong foundation, and your business is likely to eventually crumble.
Taking care of legal issues is essential to building a solid foundation. Here are a few pieces of critical legal advice you should heed before starting a business in Arizona:
Choose the Right Type of Entity
You don’t have to form a corporation when you start a business. In some cases, doing so would actually be harmful. You might be better off forming a limited liability company, a partnership, or even a sole proprietorship. There are different advantages and disadvantages to each type of entity, and there are different tax and legal obligations for each.
You should consult with a business attorney before you start your business to get advice on which type of entity would best protect your business while also helping meet your goals for profit or eventual expansion. Starting out with the right kind of entity will ensure that you get maximum benefits from your business structure, including maximum protection against personal liability.
Establish the Right Contracts and Review All Documents Carefully
Everything you do in your business will be governed by contracts and other documents. For example, you’ll often want to use sale or purchase agreements when you sell goods or services. Failing to do so may leave you open to liability. Of course, you can’t create an agreement for every customer to sign when they buy gum or a gallon of milk from your corner store. But you can create a service agreement that you post on your website or somewhere on your property, letting customers know key terms of your business interactions.
You should have contracts for your vendors, your subcontractors, partners, and anyone else with whom you do business. Do not rely on templates for these documents, do not attempt to create them yourself—and above all, be very cautious about signing forms provided by someone else without having them evaluated so that you understand their consequences! Always work with an experienced business attorney to create the documents you need for your business. A different interpretation of even one word in a contract can result in a ruling in the other party’s favor. You want to make sure the contract documents you use for your business provide the maximum protection to you.
Hire an Experienced Business Lawyer
There are so many things that can come up when you are starting a business that you may not know where to start or what should come next. If you make the wrong decisions, you can open yourself up to legal liability. Or you can cost your business or yourself a lot of money in penalties for failing to meet some financial or tax obligations.
You should hire an experienced business attorney to guide you through the start-up phase and for as long as possible after your business is off the ground. You certainly need good counsel while you are getting everything in place, but you will continue to need ongoing help as your business continues to grow. You will need advice about employment issues, vendor disputes, franchise rights, non-compete and intellectual property issues, and much more. An attorney can help you with these situations as they arise, ensuring that you stay on track to meet your goals.
Give your business the best start. Make sure you have more than just a good idea and a good business plan – have solid legal advice on your side, as well. Keep making sound business decisions and you’ll be operating for many years to come, perhaps not just in Arizona but throughout the country.
The experienced business attorneys at Denton Peterson in Arizona can help you. Our attorneys handle business formation, contract drafting, employment issues, collections, real estate transactions and disputes, franchise issues, and much more. We can advise you on the appropriate entity for your business and can help you draw up all the appropriate contracts and documents you need at any stage of your business. Our team is dedicated to helping you protect your business from liability and protecting your legal rights. Contact us today to talk with an experienced business attorney who is ready to help you.
1930 N Arboleda #200
Mesa, AZ 85213
Email: [email protected]