Entrepreneur Alert: Key Steps to a Successful Start up in 2017
As Mark Twain once said: The secret to getting ahead is getting ahead. If you have a great idea and are looking to take the next step, here are 5 key elements to “getting ahead” in 2017 by turning your idea into a successful start-up business:
- Agreement with Co-Founders. A written agreement outlining the percentage ownership, transferability of ownership interest, roles and responsibilities of founders, decision-making authority and other material aspects of the management and operations of the business will help to avoid disputes by ensuring that all parties are entering into the business relationship with a complete understanding of the terms governing the relationship.
- Form an Entity. By creating a corporation or limited liability company (LLC) you can structure your start-up to achieve liability protection from business creditors, tax savings through deductions and other treatment only available to corporations or LLCs. Formation of an entity may also aid in capital fund raising efforts.
- Compliance with Securities Laws. The sale of stock or LLC interests may be subject to federal and state securities laws. By ensuring compliance with these laws, founders can avoid significant financial penalties, including the requirement to repurchase stock or interests at the original issuance price even though the company has lost money.
- Standard Form Contracts. Every company should consider having standard form contract templates for suppliers and customers, which are tailored to your business and include terms favorable to your business interests. A clear and concise contract can help you close the deal sooner, provide you will more control of and help avoid disputes.
- Standard Employment Documents. A core group of standardized employment documents to be signed by most, if not all, employees can help establish and enforce obligations of confidentiality, intellectual property ownership, and other key terms for competing in your industry. It will also help clarify the terms of employment and expectations for a successful employment relationship.
As a full-service law firm, Primmer Piper Eggleston & Cramer PC is ready to help you turn your great idea into a successful start-up. For more information on our corporate services, please contact us at 802.864.0880.