Starting Your Own Business
By: Sergio Simoes, Esq. | May 2025
Starting a business involves several steps, each crucial for laying a strong foundation. These include selecting a business structure, registration, fulfilling legal obligations and more.
Choosing a business structure:
Selecting the right business structure is essential, as it affects your personal liability, taxes, and operational flexibility. Common options include:
Sole Proprietorship
Simple and cost-effective to establish
Unlimited personal liability
Partnership (General or Limited)
Joint ownership by two or more individuals
Requires a partnership agreement outlining roles and responsibilities
Limited Liability Company (LLC)
Offers limited liability protection for owners
Pass-through taxation, but can elect to be taxed as a corporation
Corporation (C Corp or S Corp)
Separate legal entity from owners (shareholders).
Complex formation and ongoing compliance requirements
Registering your business:
To operate legally, you’ll need to register your business with the appropriate state and local authorities. Steps may include choosing and registering a business name, filing articles of incorporation/organization, obtaining an Employer Identification Number (EIN) from the IRS and registering for state and local taxes.
Understanding Tax Obligations:
Understanding your tax obligations is crucial, including income taxes, sales tax, employment tax, employment tax, and self-employment tax.
Knowing Applicable Employment Laws:
If you plan to hire employees, you will need to comply with employment laws, including equal employment regulations, fair labor laws, workplace safety regulations and employee classification rules.
Create Business Contracts and Forms:
You will need to create contracts and agreements for daily use, such as client agreements, supplier contracts, partnership agreements, non-disclosure agreements, employment agreements, and the like.
Other considerations:
Intellectual Property: As a business owner, you will also need to consider protecting your business's intellectual property through: trademarks (for branding), copyrights (for creative works), patents (For inventions), and trade secrets (for confidential business information).
Funding Options for Business Growth: Evaluate financing and funding options, including personal savings, small business loans, and investors/venture capital.
Insurance: When starting your own business you need to consider general liability insurance, professional liability insurance and workers’ compensation insurance, among others.
Let Us Help!
Each Business's needs are unique. Consulting with professionals and doing thorough research ensures that you are making informed decisions and selling your business on the right path to success. The legal team at Sanchez Law is here to assist you in your entrepreneurial journey, with services ranging from business formations to everyday business counseling. In addition to these services, Sanchez Law supports clients with, among other matters:
Residential Real Estate Transactions;
Commercial Real Estate Transactions;
Lease Negotiations; and
Basic Wills and Estates.
To learn more about our services from a member of our team, please contact us today. We look forward to hearing from you.