Startup companies need to make sure they are smart and prepared when it comes to Long Island business planning. Entrepreneurs who want to be successful need to consider not only the immediate goals for business success, but also how to grow their company over the long-term and turn the company into their legacy.
Eghrari Wealth Training Law Firm can provide invaluable assistance with the Long Island business planning process. We understand what startups need to do so investors can protect their interest in the company and their personal assets. We can also help you to make sure that one day, you can transfer your business to co-owners and heirs and allow your company to live on long after you are gone.
To find out more about the ways in which we can help you, give us a call at (631) 265-0599 to speak with a member of our legal team.
What Do Startups Need to Know About Long Island Business Planning?
When you start your company, there are three primary goals you have: make your business profitable, protect your personal assets in case of potential loss; and find ways to protect your investment in the business organization. Protecting your investment not only means helping your company to grow during your life, but also making certain that your company can pass on to future generations and continue to thrive.
The steps you take and the legal tools that you use when you begin the business planning process are going to determine whether you are able to accomplish your three goals. Some of the different legal tools that should be a part of your business planning process include:
- Creating a business plan. Your business plan provides the road map to your profitability. With your plan, you can outline your company goals, determine what you need to get into the black, and set forth a timeline for becoming profitable. Your business plan will help you to get financing from banks and investors, and can be referred back to for guidance to make sure you are on the right track in building your business.
- Incorporating or choosing the right business structure. The choice of business structure is very important both to protect your personal assets and to make sure that some day you are able to transfer your ownership in the company. For many businesses, forming a corporation is the best approach to take. Incorporation creates a separate legal identity for your business so if your company is sued, you aren’t personally liable for losses. Incorporation also has tax advantages, it means a business bankruptcy won’t be a personal bankruptcy, and it ensures that you can transfer shares with greater ease than if you were simply a partner in a partnership.
- Creating a buy/sell agreement. If you have co-owners, this is essential to determine what happens if anyone must leave the organization. A buy/sell agreement provides a method of valuing the company if anyone needs to leave. It can also give co-owners the first right to buy a departing owners shares of the business so no one ends up working with someone they don’t want to work with.
- Creating a business succession plan. You may some day need to leave your business because of death, disability, or retirement. Having a plan in place to ensure that new owners can quickly and easily take over is important to ensure that the business isn’t dependent upon your continued involvement to be successful.
You will also want to make sure that you have made plans for your business as a part of your estate plan. Many people have a lot of their wealth tied up in their company and don’t have a lot of liquid assets. The problem comes when your business is valuable enough that it triggers estate taxes by pushing the entire value of your estate over the legal limit. Your family could be forced to pay taxes based on the value of the business, and may not have the money to do so- which could mean taking a loan, selling business assets, or even selling the company.
How a Long Island Business Planning Lawyer Can Help
Eghrari Wealth Training Law Firm provides help to startups with making effective use of legal tools to get the company started on the right foot and on the path to operating successfully. We also provide business planning advice that is helpful over the course of your life and over the course of the company’s growth. To find out more about the ways in which a Long Island business planning lawyer can help, give us a call at (631) 265-0599 or contact us online to speak with a member of our legal team.
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