“The Do’s and Don’ts of Owning a Small Business”
(Presented by Paige Arden Stanley – Attorney at Law)
Bill Smith began the Roundtable discussion as usual by asking everyone to introduce themselves and their business. Paige then began her PowerPoint presentation on the “Do’s and Don’ts of Owning a Small Business.”
- Statistics: Georgia ranks #1 in the United States for entrepreneurship and #7 for the best state for businesses.
- Top DO’s for owning a small business:
- Do limit your liability to your investment in your company by incorporating your business or organizing it as a limited liability company.
- Do disclose everything to your attorney about your proposed business venture and past business experiences, both positive and negative.
- Do discuss with your attorney the advantages and disadvantages of the various forms of business entities.
- Do discuss with your attorney the “corporate formalities” to which you must adhere in order to preserve the limited liability afforded to you by virtue of having incorporated your business.
- Do discuss with your attorney the need for a detailed written buy-sell agreement with your business partners.
- Do discuss with your attorney the need for a written employee handbook and written employment agreements containing confidentiality and noncompetition obligations if necessary.
- Do apply for a federal tax identification number for your business (necessary for almost all businesses).
- Do talk to a tax professional and budget for taxes.
- Do invest in technology.
- Do prepare a detailed written business plan.
- Do join your local chamber of commerce, local civic organizations, trade groups, and entrepreneurs’ organizations.
- Do get to know your customers and suppliers.
- Do network.
- Top DON’Ts for owning a small business:
- Don’t make expensive office space and furnishings a high priority unless you are in an “image” business.
- Don’t print your stationary, business cards, and promotional materials until you have had a trademark attorney conduct a search of existing state and federal trademarks and pending trademark applications.
- Don’t ask or permit your employees to breach confidentiality or noncompetition agreements with their previous employers.
- Don’t spend money required to be set aside for employee and other withholding taxes.
- Don’t sign company contracts in your individual capacity. Rather, sign them on behalf of the company as an officer of the company.
- Don’t put off buying insurance.
- Don’t give up 50 percent of your company to investors in your first fundraising effort.
- Don’t pass up opportunities for free publicity.
- Don’t try to do everything yourself. Setting up a business is complicated, and a business law attorney can assist you in making and implementing the right decisions.
Paige went on to present, “5 Key Mistakes Business Owners Make and How to Avoid Them.”
- Failing to Maintain or File Proper Organizational Documents.
- Failing to Check an Employee’s Non-Compete Agreement.
- Weak or Non-Existent Employment and/or Independent Contractor Agreements.
- Litigation!
- Failing To Get Legal Advice When Appropriate.
For a more detailed description of these “Key Mistakes,” please visit Paige’s website at www.stanleylawoffice.com. Sign up for Paige’s email list to receive more helpful articles and advice!
Next Roundtable Meeting: Wednesday, September 8th, 2010
Topic: TBA
Facilitator: Bill Smith
