Does anyone have good advice about the legal side of starting my own business?

2016-03-20T15:33:39-04:00

Response by Maj John Bell made Mar 20 at 2016 3:51 PM

2016-03-20T15:51:29-04:00

Check with the nearest Small Business Administration office and SCORE (Senior Core of Retired Executives)

Response by MAJ Ken Landgren made Mar 20 at 2016 4:01 PM

2016-03-20T16:01:57-04:00

In general, the risk to all your assets is on the table as a small business owner. If you create a corporation, the risk to the assets are relegated to what's in the corporation.

Response by Capt Private RallyPoint Member made Mar 20 at 2016 4:48 PM

2016-03-20T16:48:45-04:00

Whatever you do have it blessed by an attorney before you start up the business.

Response by CPT Richard Riley made Mar 20 at 2016 5:00 PM

2016-03-20T17:00:08-04:00

That venture is not an easy one. Be care what you do and when you do it. If you have the option to avail yourself of JAG, do it. IF not, tread reasonably with the SBA and check out any military friendly legal aid societies in your area for advice and council. Being a self-proprietor is tricky tax wise and the amount of paper you have to keep up with and fill out in mountainous. Good luck and message me if I can be of any further specific help.

Response by MAJ Michael Pauling made Mar 20 at 2016 6:50 PM

2016-03-20T18:50:50-04:00

You need a Lawyer that is expert in Business Law for your area. MOAA has a directory of Lawyers who offer their services to MOAA Members at a discount. While you may not be a MOAA Member you can use directory as a start point to identify Veteran-friendly Attorneys in your area. Make sure you hire the Lawyer to represent your interests and not any third parties. It may sound pessimistic but the money spent up front may save bigger headache later.

Response by SrA Sharri Cook Hodges made Mar 22 at 2016 9:14 AM

2016-03-22T09:14:35-04:00

I started my own small business last year. Make sure you check with your state, they usually have information on a government website that is easily accessible. Loaded with information about what to do. Get a good accounting system like Quickbooks and make sure you understand how to use it to your advantage. A great accountant who is familiar with the program is the best resource. Good luck!

Response by PFC Donnie Harold Harris made Mar 22 at 2016 9:43 AM

2016-03-22T09:43:53-04:00

Get good help from a single source. Like an excellent account. I have used mine for 25 years.Bradley Krystle. Only, Make sure to us someone you admire for their dedication to you, there in their business.

Response by A1C Ronald McKenzie made Mar 22 at 2016 9:48 AM

2016-03-22T09:48:34-04:00

Your legal issues will vary depending on what you're going to do and how much legal exposure you may have. It is also possible to structure your business to limit exposure to legal issues. I run an e-commerce business and found that to be about as safe as anything else out there. No employees, no customers inside a business property, and plenty of deductions possible. Totally the way to go.

Response by LtCol Joseph Crane made Mar 22 at 2016 9:54 AM

2016-03-22T09:54:17-04:00

That's a broad question. What kind of legal advice exactly. If it's something as simple as how to form an LLC then check out my YouTube video: https://m.youtube.com/watch?v=IYsld8sLidA
Otherwise, can you be more specific on what you are looking for?
Joe Crane host of veteran on the move podcast. http://www.veteranonthemove.com

How to Form an LLC in Less Than 7 Minutes

How to Form a Limited Liability Company in Less Than 7 Minutes

Response by SSG Lawrence Crow made Mar 22 at 2016 9:55 AM

2016-03-22T09:55:19-04:00

Are you talking about sole proprietor type of business, entrepreneur, brick and mortar, network marketing? It depends on the type of business. Send me a message.

Response by MSG Mitch Dowler made Mar 22 at 2016 10:25 AM

2016-03-22T10:25:24-04:00

CPL Gibbons you gave no details whatsoever but there are some points. The correct legal entity for the business is crucial both from an asset protection perspective and a taxation perspective. Real estate is usually best held in an LLC. Businesses that conduct more activity exposing it to liability likely would benefit from another structure. Look for podcasts or blogs specific to the area of business you are dealing with and in addition bone up on taxation and asset protection by learning from experts such as Mark Kohler.

http://www.blogtalkradio.com/markjkohler

I would not go to JAG for much of any legal advice regarding starting your own business. JAG can not legally give you that advice other than how to keep it from impacting your military career.

The Mark Kohler Show Online Radio by Mark J Kohler

The Mark J. Kohler Show is a radio show dedicated to helping listeners live the "American Dream" and build and protect their wealth. Mark Kohler discusses real

Response by LtCol Richard Edmonds made Mar 22 at 2016 11:57 AM

2016-03-22T11:57:44-04:00

Hi Cpl, I am a retired Marine and an attorney in Michigan. First, register your business with the State that you are going to be operating in. This will be your business entity, probably an Limited Liability Company (LLC). This protects your home and personal assets in case your business gets sued. You should also get an EIN number from the IRS to open your Business Bank Account. You want to keep all business finances separate from your personal funds (again Liability Protection). Your Bank will want to see your State Registered LLC document and your LLC Operating Agreement (Bylaws). Once you have all of that you are on your way. If you are operating on your own (or you and wife) you can file normal 1040 Income Tax with Schedule C. If you have a partner other than wife you will need an accountant to help with a K-1 and 1040. GOOD LUCK, SEMPER FI

Response by PO2 Shannon Noble made Mar 22 at 2016 12:26 PM

2016-03-22T12:26:30-04:00

SBA - Boots to Business (boots2business dot org), SCORE – Veteran Fast Launch Initiative (score dot org), Brothers Fund (brothersfund dot org), VA Office of Small & Disadvantaged Business Utilization (OSDBU) (va dot gov osdbu), Veteran Entrepreneur Portal (va dot gov, osdbu, entrepreneur) Vet-Biz Network (vet-biz dot com), Veteran Owned Business Directory (veteranownedbusiness dot com)

Response by MSgt Tim Parkhurst made Mar 22 at 2016 1:31 PM

2016-03-22T13:31:05-04:00

Lots of good responses, and they pretty much all sum up the fact that YOU must do your due diligence. Hire or get advice from an attorney who has demonstrable experience in business law before you file anything with the government. In the meantime, connecting with fellow veterans who have decided to take the leap into the world of entrepreneurship can be a great help on many fronts. Programs like Entrepreneurship Bootcamp for Veterans (http://ebv.vets.syr.edu/) are awesome. I attended in 2014, and it changed my life. Also, check out veteran non-profits like Warrior Hall (http://www.warriorhall.org) who provide a "Warrior Link-Up" to help connect veteran entrepreneurs on a personal level to create that support network that only fellow veterans can provide. There are a lot of successful veterans out there, and most are very willing to assist in any way they can. Good luck, Marine!

Response by CPT Steve Wolszczak made Mar 22 at 2016 2:07 PM

2016-03-22T14:07:24-04:00

Make sure you incorporate, either an LLC or S-Corp. LLC is simpler in some ways, S-Corp has some tax advantages. you can incorporate via Legal Zoom or other online entity. Go the simple way on Legal Zoom, all their add-on services don't amount to much value. Lzoom will ask if you want them to be your "registered agent" with your State (at least in IN), for about $200. An in-state registering agent other than them is about $50 a year. Think about some level of liability insurance, depending on the biz. By incorporating, if the biz incurs debts or damages (liability), they can take your biz, but not go after your personal assets. On the other hand, if you mix, i.e. co-mingle your biz and personal monies or assets (e.g., if you start a landscaping company and use one of the mowers to do your own lawn without compensating the biz), you have "pierced the corporate veil" and now your personal assets are at risk. I would invest in a reasonable small biz accountant. It's important that you like this person, you feel you understand them, and they are not charging you overly (about $200 / hr is reasonable for a small biz, you may need to meet with them twice a year or 3 times a year). Consider an accounting program. I'm a BIG fan of Quickbooks online. After you sign up for Quickbooks, add your accountant online as your professional, they can look at your accts from their desk then. It makes sense in your initial meeting with your accountant for them to help you set up a basic "Chart of Accounts" for your biz. You should be able to email them and ask them, "I just received/spent these $$ for ......this......."" What category of Expenses (or Income) does that fall under? " without them charging you. Do research, buy books, download guidance online, expect to invest a good bit of time upfront getting your biz up and running. You're probably going to need a biz license with your State and potentially personal property filing with the State and any number of other State/County forms depending on where your biz is. Good luck on complying with all this, it's tough; unless you hire a biz lawyer to keep you clean, expect to pay a penalty or two, or beg a local bureaucrat for forgiveness.

Response by SFC David Davenport made Mar 22 at 2016 3:43 PM

2016-03-22T15:43:42-04:00

Talk to the local Chamber of Commerce. You can usually find someone with some experience that is willing to give you solid advice and answer some of your questions.

Response by SGT Andy Norcia made Mar 22 at 2016 5:39 PM

2016-03-22T17:39:30-04:00

What kind of business is it?

Response by Sgt D Smith made Mar 22 at 2016 6:28 PM

2016-03-22T18:28:48-04:00

Google the "veterans entrepreneurship program". I attended the one at University of Florida. It is a free program and when you are done you will have all the expertise and help you need to start, fund, and run a successful business. There is also one at U of OK. I am sure there are others. Also your local S.C.O.R.E will assist, mentor, and advise on small business ownership. Good luck with your endeavor. If you go to U of Fla. Tell professor Morris I sent you.

Response by SFC John La Voie made Mar 23 at 2016 2:47 AM

2016-03-23T02:47:06-04:00

I will apologize first if I am saying something that has already been said - there are a lot recommendations for different types of entities to chose from. From the tax perspective, keep 1 thing in mind, if it is just you as an owner, your choices just got limited to a Sole-Prop, a C or S Corp. I say that because the federal government does not recognize a Single Member LLC or LLP (SMLLC or SMLLP) - both of these business types are a state creation and while you may still have to file a return in the state you are in at the state level for your SMLLC/LLP, you will not be filing 1 at the federal level. What does that mean to you, at the federal level, you have no "Corporate Umbrella" to protect your personal assets. You will also want to ensure that the entity type "fits" the business to be performed. Don't form an entity that will force you to pay employment taxes on income that would not have been subject to it if you had chose a different entity type. That's the short version of my 2 cents worth - as a CPA with an MST that specializes in small businesses - I have more than a little experience with the pitfalls you are facing. There is a lot of in this thread, most of what I read was spot on and very good. That being said, what ever you decide to do, good luck and I hope it works out even better than you hope it will.

Response by SFC Michael Vasseur made Mar 23 at 2016 6:28 AM

2016-03-23T06:28:14-04:00

There are lots of great responses with great advice to your question. The tax burdens, the company entity, i.e. LLC, S Corp, C Corp, etc., are also things to consider. A financial advisor can help navigate through some of this as well. Let me know if I can help.

Response by CSM Darieus ZaGara made Mar 23 at 2016 7:10 AM

2016-03-23T07:10:05-04:00

Hello Cpl. First, if you are active duty, reserve or NG you need to discuss with your local JAG office to ensure your business will not be a conflict of interest. Next you go on line and incorporate cheaply so that you cover your personal assets. Next you look for an online mentorship program for small Veteran owned small business. That is a good start.

Good luck!

Response by SSG Private RallyPoint Member made Mar 23 at 2016 8:01 AM

2016-03-23T08:01:34-04:00

Check out how to be certified as a Veteran owned business. You will get some tax credits, possible grants, and preferred contract placement with the Government.

Response by SFC Russell Shaw made Mar 23 at 2016 8:09 AM

2016-03-23T08:09:34-04:00

Your business will truly succeed when you develop the owner and not the business. The most successful businesses are those where the owner continually thinks into how to improve themselves. This of course is transferred to the business but people buy from those who excel at their skill or service. This is how the top 1 percent became the top 1 percent. They also are quicker to buy from those who they know like and trust. So develop your people skills I recommend the book "Everyone Communicates Few Connect" by John Maxwell. As a leadership trainer I find that taking people through this training helps them to grow their business.

Response by CDR James Funk made Mar 23 at 2016 8:46 AM

2016-03-23T08:46:43-04:00

1) The Legal Assistance Office may be able to give you some general guidance, but probably won't be able to help beyond that.
2) Check out the local Small Business Administration office. Aside from general advice, they have periodic seminars on a variety of topics associated with starting a business. (In April, the Ohio SBA offices are offering a free seminar on The Resource Network - an overview and introduction to the organizations that are available at no cost to individuals which want to start a business or grow their existing businesses.) If my recollection is correct, the SBA website also has a link to writing a business plan which will be necessary if you're seeking any type of funding from financial institutions.
3) Get an attorney. Yes, it can be expensive; however, proceeding without legal help could be even more expensive. Get an understanding of how the attorney is going to charge and who will be doing the work -- attorney or a paraprofessional -- as well as how paraprofessional time will be charged. Be sure to find an attorney who practices in this area, i.e., you probably won't want an attorney specializing in criminal defense setting up your business.
4) You might consider a pre-paid legal service plan in the beginning. These types of plans usually require a monthly fee (some as low as $20/month) to get you access to an attorney who will answer your questions. For some plans, the monthly fee simply gets you access and the attorney will answer your questions for a specified fee while others the monthly fee allows you to get answers to your legal questions without any additional fee. Some plans have experienced attorneys answering questions while others have newly licensed attorneys. Some plans have have attorneys who practice in the particular area of the law (business organizations, labor, licensing, intellectual property, franchising, tax) while others you get whomever answers the phone. Some plans allow unlimited questions per month while others limit the number of questions you can ask per month. Some plans require you to commit to a particular period of time while others don't. Some plans will review documents; others won't.
5) Research, research, research. Read Entrepreneur. Keep a notebook to write down your questions, observations, and ideas.
6) Get it in writing.

Response by 2LT Bruce Bergley` made Mar 23 at 2016 3:01 PM

2016-03-23T15:01:18-04:00

You need to check local law for any licensing requirements (food service, construction, Auto dealership, professional services...) From an organizational standpoint, I like using an LLC - it allows you to transition from being treated as a Sole Proprietor to electing Corporate treatment for tax purposes. It should shield you from business liabilities, but not a perfect shield. Don't skimp on the liability insurance. Check with a local CPA - should be able to point you in the right direction.

Response by SGT Allen D'Aoust made Mar 24 at 2016 10:20 AM

2016-03-24T10:20:10-04:00

First just a little history, I used to own my own small business for 6yrs and lived the ups and downs of that life.
The number one thing is to form an LLC, which you can do this very cheaply but will offer you some protection. Then set up a separate email for your company, never every use your personal email for any business email, no matter how insignificant it may seem. Always sign your emails, checks, or contracts with your name then “member of “whatever your company is called, this is to protect yourself so the court system cannot penetrate the LLC protection.
The number two thing, have an accountant or someone who knows accounting externally well, set up your bookkeeping system. It is so important to keep accurate accounting records not just for future bank loans but also so you can see how your company is doing. It is one thing to B.S. your friends and saying that you’re making a profit, it is another to showing them. Quickbooks Pro was a good software to use.
Always read and educate yourself on business and whatever industry your company is in. Knowledge is the key to success.
Good luck

Response by Capt Elizabeth Farrell made Mar 24 at 2016 10:01 PM

2016-03-24T22:01:01-04:00

You can also check with the Veterans Business Outreach Center (VBOC) Program through the Small Business Administration (https://www.sba.gov/offices/headquarters/ovbd/resources/362341). They can provide assistance with determining which legal entity will best suit your business needs and how to get your business off the ground.

Office of Veterans Business Development | Resources | The U.S. Small Business Administration |...

The page you are looking for is unavailable. The page address may have changed, or the page may have been removed.