The Importance of Business Consultation

When setting up a business, there are several legal concerns to consider to ensure compliance and minimize risks.Contacting an attorney at All Rise! can minimize mistakes when initially forming and setting up the business which will prevent headache and costs down the road. This will also free you up to focus on the creative and exciting aspects of your new venture.

Here are some key areas to focus on when setting up a business with an attorney:

1. Business Structure: Choose the appropriate legal structure that suits your needs, considering liability protection, tax implications, and management structure.

2. Registration and Licensing: Ensure your business is properly registered with the state and obtain any necessary licenses and permits specific to your industry and location.

3. Zoning and Land Use: Check local zoning laws to ensure that your business activities are permitted in your chosen location, especially for retail or commercial businesses.

4. Intellectual Property: Consider protecting your intellectual property (IP), such as trademarks, copyrights, and patents, to safeguard your brand and products.

5. Contracts and Agreements: Draft clear contracts with suppliers, customers, and employees. Consider having legal agreements reviewed by an attorney to ensure they protect your interests.

6. Employment Laws: Comply with federal and state employment laws, including hiring practices, wage and hour laws, workplace safety, and anti-discrimination regulations.

7. Tax Compliance: Understand your tax obligations at the local, state, and federal levels. Consider consulting with a tax professional to ensure compliance and optimize tax benefits.

8. Insurance Needs: Evaluate your insurance requirements, such as general liability, property, workers' compensation, and professional liability insurance, to protect your business from potential risks.

9. Data Privacy and Security: If you collect customer data, ensure compliance with data privacy laws (like GDPR orCCPA) and implement measures to protect sensitive information.

10. Dispute Resolution: Have a plan for resolving disputes, whether through mediation, arbitration, or litigation, and consider including dispute resolution clauses in contracts.

11. Ongoing Compliance: Stay informed about ongoing legal and regulatory requirements, including filing annual reports, renewing licenses, and maintaining corporate formalities if applicable.

One of the first decisions you will make as a business owner is what type of legal entity your business will be. This can have a huge impact on your tax burden at the corporate and personal level and can also affect your personal liability should your business face litigation in the future. Protecting yourself and your assets is one very important part of choosing the legal entity best suited for your needs.

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In Oklahoma, you can choose from one of the following legal business entities which each has its own advantages, disadvantages, and requirements:

1. Sole Proprietorship: A business owned and operated by a single individual. It’s the simplest form but offers no personal liability protection.

2. Partnership: A business owned by two or more people. There are general partnerships (where all partners share liability) and limited partnerships (where some partners have limited liability).

3. Limited Liability Company (LLC): A flexible business structure that provides limited liability protection to its owners (members) while allowing for pass-through taxation.

4. Corporation: A legal entity that is separate from its owners, providing limited liability protection. Corporations can be further categorized as a C Corporation or an S Corporation.

5. Nonprofit Corporation: Designed for organizations that operate for charitable, educational, or other purposes. Nonprofits can apply for tax-exempt status.

6. Professional Corporation (PC):Specifically for licensed professions (like doctors or lawyers), offering limited liability to its shareholders.

Most small business owners utilize the LLC entity. An attorney can assist you in determining whether a C Corporation or anS Corporation is best for you. The main difference between the two is how profits and wages are taxed for the owners (called “members”). S Corporations have the benefit of avoiding double taxation at the cost of restricting the number of members allowed. Double taxation occurs when profits earned by an LLCare taxed first at the corporate level and then again once they are received as wages by the members. S Corporations are a unique tax entity that avoid double taxation by allowing for “pass-through income.” This means that the corporate level of taxation is bypassed and the amount received by the members as salary or distributions is taxed only at their personal income tax rate. This can ensure an increase in income for the members, which is always good news.

The finer points of issues like double taxation and personal legal liability can be complex. Hiring one of the attorneys at All Rise! to explain the benefits and help you make the best choices for your business and your future is a decision you won’t regret.

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