First Steps to Establishing Your New Business: Management and Risk

As part of your initial business planning, it is prudent to have an attorney assist you with preparation of your initial contracts and ensure that you are adequately insured. In this post, we focus on some legal and general planning issues that your new business should take into consideration.

What Contracts Does My Business Need?

Well-written contracts provide invaluable protection for your business. They delineate roles and responsibilities, protect confidential information, ensure payment as agreed, provide clear remedies if one of the parties doesn’t fulfill their duties, and usually keep you out of court.

Most businesses generally require at least one of the following kinds of contracts:

  • Commercial contracts for sales, distribution, and manufacturing activities
  • Shareholder agreements to outline company management and shareholders’ rights and obligations
  • Mergers and acquisitions, including the development of strategy, due diligence, negotiation, and financing
  • Commercial leases for real estate

Our attorneys can assist you by drafting your major contracts and/or preparing routine agreements that you can adapt and reuse as needed.

What Business Risks Should I Guard Against?

Your new business will encounter numerous types of risks – operational risks, financial risks, compliance risks, environmental risks, health & safety risks, and many others. While most business risks can be managed through contracts, choice of business structure and other proactive planning, many risks require insurance coverage.

To help you maneuver management of business risks, you should seek the assistance of an attorney who is familiar with your industry, or who is at least be willing to learn it.

What other legal and reporting issues should I be concerned about?

Here are a few of the many other legal and reporting issues faced by business owners that you should prepare for:

  • Corporate disclosure and governance issues
  • Federal and state securities reporting
  • Employment benefits and executive compensation issues
  • Payroll taxes (collection and reporting)
  • Immigration issues concerning employees who are not U.S. citizens

You should also consider implementing company-wide policies and procedures (including employee training) to ensure that you and your employees don’t inadvertently violate anti-discrimination laws, health and safety regulations, and wage and hour laws.

San Francisco business and tax attorneys

The business and tax attorneys at Moskowitz, LLP work with all types of companies in all aspects of starting a new business, and maintaining an existing one. Protect your business (and yourself) as your business forms and develops by consulting with us during your business launch and after your business is up and running.

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