Important FYIs for New Business Owners

Important FYIs for New Business Owners

Important FYIs for New Business Owners

Once you’ve completed the process of legally establishing your business there are some important things to keep in mind as you proceed to begin operating your business. Here are some helpful tips to get things started on the right foot:
  • Ensure that all business is transacted in the company’s exact legal name and kept separate from your personal business and affairs. Think of your company as a legal “person” separate and distinct from you or your other businesses.
  • Establish and utilize insurance policies and bank accounts in the company’s name for all company business. Make sure that all funds flowing to and from the company do so through the proper bank accounts.
  • If you own multiple businesses and intend to have employees work on behalf of more than one of your businesses, it’s advisable to set up a “management” limited liability company to contract with each of your businesses that utilize these employees. Businesses, even if you own them all, cannot “share” employees without each business receiving adequate compensation.
  • Maintaining proper accounting records, financial statements and annual reports is imperative for long-term success.
  • If your company intends to engage in other business activities than those for which it was originally formed, it may be necessary to obtain special licenses and permits or meet other requirements.
  • You may only conduct business in the states in which it has been duly authorized. If your company transacts business in other states, it may be necessary to make additional filings in those states.
Following these guidelines provides protection for you against personal liability for the company’s debts and obligations. It’s always best to consult your attorney if you have any questions!