Business Start-Up EssentialsShare this post
As “The Great Resignation” continues, more people have considered how to start a business in Chicago. An average of 500,000 individuals apply to start a new business each month. As a result, there are a lot of questions about essential business structures. The staff At Anthony J. Madonia & Associates is here to help you navigate the process.
Creating a new business? Essentials For a Business Start-Up
There are several factors to consider when you want to know how to turn your passion into a business.
- How do you want to serve people with your passion?
- How does it resolve a customer’s pain point -the problem the customer is experiencing?
- Is your solution different from your competitors?
- Is there an audience for your product or service?
- Who are the primary competitors?
- Do you want to focus on a regional, national, or international group of consumers?
- What is your available budget to start the business?
- Will you require funding from other sources?
- What marketing methods are required to promote your business?
- How will I define success?
Generally, you should answer most of these questions as part of a well-defined business plan. This is the bible for your organization, and it helps you complete the necessary steps to reach your goals. Although you can move forward without a business plan some of the above questions are harder to answer. The reason is you’re caught up with daily operations.
What business structure best fits your business?
Your business can take the form of several structures. The one you choose depends on the people involved and funding.
A sole proprietorship means you’re the founder and operator of the company. You may not have any employees or separate bank accounts to manage your profits. The benefit of this structure is you own the revenue you make, and it’s taxed as part of your personal income. The drawback of a sole proprietorship is you’re directly liable if someone seeks monetary compensation for your services.
An LLC (Limited Liability Company) is a hybrid structure with some benefits of partnerships and corporations. Unlike a sole proprietorship, you must file paperwork with the state to establish the business. The advantages of an LLC include the protection of your personal assets and lower tax rates than a corporation. On the other hand, you need to pay ongoing fees to the state to maintain the LLC, and business income is taxed even if profits aren’t distributed.
In a corporation, the company is considered independent of its owners. In other words, separate taxes are filed on profits. Additionally, business bank accounts must be set up to manage income and expenses. One plus to a corporation is certain versions allow you to set up fund-raising structures. While this seems simple, this type of business structure is more complicated to control.
How a Business Attorney can help you Create a Business
Chicago business attorneys help you through every step of business start-up. First, they meet with you and pose questions that are like those you asked yourself at the point of creation. Next, business attorneys in Chicago examine your business plan. From here, they determine your best business structure.
Once this is done, Chicago business start-up attorneys help you with the necessary paperwork to establish your company with the city and state. This includes filing documents for an LLC or corporation. If the structure is a form of corporation, then business attorneys in Chicago assist you in the creation of your board of directors and the necessary legal documents.
However, business lawyers in Chicago don’t stop working with you once the business is active. They continue to consult in various aspects that include copyrights, trademarks, and intellectual property. Their main goal is to ensure your business runs smoothly from its start until its time to sell it or close.