Mike Refolo is a business lawyer and partner at Mirick O’Connell, based in Worcester and Westborough. You can contact him at mrefolo@mirickoconnell.com.
10. SECURE PROTECTION
Some businesses operate fine as sole proprietorships or general partnerships, but if your business is at risk of being sued, consider forming a corporation or limited liability company for liability protection, and get an IRS employer identification number.
9. CONSIDER TAXES
The taxes you owe may depend on the type of entity you form. For instance, a corporation without an S election is double taxed. Multimember LLCs and S corporations are generally taxed like partnerships at the ownership level.
8. PLAN WITH CO-OWNERS
If your business has more than one owner, agree with your co-owners to address the effect of trigger events, such as death, disability, resignation, bankruptcy or divorce.Â
7. GET AN ORIGINAL NAME
Your business name, logo, and brand are valuable goodwill. Be sure to check Google, the secretary of state and USPTO websites to make sure your brand does not infringe upon anyone else’s intellectual property.
6. PROTECT INVENTIONS
Make sure inventions are appropriately assigned to your business and consider patent protection. Use non-disclosure agreements to further protect your invention and your right to patent it.
5. HIRE CAREFULLY
When hiring someone, be sure compensation and benefits are defined. Protect your business with reasonable non-compete, non-solicitation and non-disclosure provisions.
4. INSURE RIGHT
Massachusetts requires businesses to obtain workers’ compensation insurance. Protect your business with additional appropriate insurance policies.
3. SECURE LICENSES
Certain professions and trades are regulated and require prior approval before the business is formed. Make sure the required licenses, insurance and bonding are in place.
2. BE CAREFUL WITH LEASING
If you’re entering into a lease, make sure your use of the property is permitted under applicable laws.
1. GET COMPETENT ADVISORS
Find a team of competent, efficient professionals. Get a lawyer, accountant and business and insurance advisor.
