Deal with Business Partners Professionally

ü  Verify their Identity, Citizenship, Credit & Background

ü  Execute Buy-Sell Agreements to separate personal and business assets like major equipment

ü  Follow Corporate Governance Protocol – maintain records, transparency in operations, etc.

ü  Develop Succession Planning – including exit strategies, retirement buy-outs, etc.

 

Limit Personal Liability

ü  Choose the right entity form

ü  Include Indemnification provisions in Operating Agreement / By-Laws

ü  Follow administrative protocols

ü  Avoid Personal Guarantees

ü  Avoid accumulating Non-dischargeable obligations (e.g., back taxes)

ü  Implement Asset Protection strategies as needed

 

Be Adequately Insured

ü  Business – Liability, D&O, Property, Auto, Business Interruption, Home Office, Key Man

ü  Worker's Compensation

ü  Buy-Sell Life Insurance

ü  Verify all your Contractors’ Insurance / Bonding as well

 

Understand the Consequences of the Business Location(s) You Choose

ü  Lease Negotiations – check Escalations, Assignment rights, CMA provisions, etc.

ü  Building Purchases – do Environmental Due Diligence, etc. before you buy

ü  Home-Based Business Limitations

ü  Register as Foreign Entity for locations in other states

ü  Zoning & Building Codes

ü  ADA Compliance

 

Comply with Licensing, Registration and Permit requirements for YOUR industry

ü  State & Local

ü  Federal

ü  International (e.g., if exporting)

 

Be Savvy in Business Transactions

ü  Read Contracts before you sign

ü  Understand Government Contracting Quirks

ü  Use proper legal structures for Teaming and Joint Ventures

ü  Know your Investors’ Rights

ü  Use Non-Disclosure Agreements (NDAs)

 

Engage Employees the Correct Way

ü  Use Employment Agreements (sometimes)

ü  Ensure Independent Contractors really are independent—see IRS Pub. 15-A!!!

ü  Develop Hiring and Firing Policies

ü  Follow Immigration Law Requirements

ü  Use Non-Compete Agreements prudently

ü  Don’t Put Off Firing a Bad Employee

ü  Provide proper training and supervision—employers are responsible for employees’ acts

 

Manage Your Intellectual Property (IP)

ü  Business Identity—secure Domain Names, Trade Marks, Trade names etc. at start-up

ü  Idea Protection—use NDAs, copyrights, patents, trade secret protocols as needed

ü  Consider Licensing as well

ü  Also avoiding Infringement of other’s IP

 

Don’t Avoid Tax / Accounting Matters

ü  Segregate your Personal and Business Funds

ü  Charge the applicable Taxes in E-Commerce Transactions

ü  Collect Taxes, Pay Taxes—all of them, on time!!!

ü  Understand the Tax Implications (and restrictions) of transacting with NPOs

ü  Respond to IRS Notices promptly

 

Team with Key Professional Service Providers

ü  Attorney

ü  Accountant / Bookkeeper

ü  Insurance Agent

ü  HR Consultant / Pay Role Service

ü  Banker

ü  Other