This article contains tips for business owners. The views expressed and the advice given were not written by a legal professional, nor does it substitute legal assistance or guidance. Please consult a lawyer or business attorney for any legal questions or advisement.
You have decided to open your own business. That’s amazing! This is a decision that no one takes lightly, and your decision to move forward is a big step towards entrepreneurship and building your own brand and business.
But guess what? The decision to open your business is just the beginning!
There are many considerations that you and any business partners, sponsors, or financial benefactors will need to take, and a big part of this is the legal actions necessary to start and sustain your business. It can be complicated, with each state using different laws and practices and with multiple types of business organizations and levels.
I don’t know about you, but one look at all the legalese on my state’s small business website makes my head spin. Fortunately, I consulted an expert and AMSE member! Ashley Marshall of Cranford Marshall Legal, LLC provided me with educational information on business formations that they use in their firm.
While this does not constitute legal advice and is not a comprehensive list, taking these considerations and consulting with an attorney can help you start out on the right foot.
Carefully select and research your business name.
You probably already know what this is - but is it available? You can search for your business name by state and through the US Patent and Trademark office. You can also search for domain names to ensure you can set up a website with your business name.
Don’t forget to ask your family and friends about your business name. Does it sound familiar or too similar to another business? What do they think of it? Once it is official, it’s difficult to change it - so do your research and be sure of your name.
Decide on your address:
Are you working solely from home? Your first instinct may be to register with your home address. However, some states have strict requirements and laws regarding a home-based business. Make sure you consult with an attorney, your local chamber of commerce, or your secretary of state office to ensure you are following the laws.
There are plenty of options available to you if you will be working in your home but do not want it registered as your official address. You can request a registered agent to collect your mail and serve as your official address. You might decide to use a PO Box for your official mail. Whatever you decide, do what will work best for your business now and in the future.
Form your business.
This might be the most confusing part of business formation. There are multiple types of business entities - from sole proprietorships to LLCs to S-corporations to C-corporations and more. There is no easy way to determine this, but guidance helps. You can consult this guide from the Small Business Association to help you determine this.
After this, you should decide what state to incorporate in and begin filing all your legal documents for formation. Our Member Dashboard has a Formations + Entities checklist to help guide you through this for the four main business entities. You can also find assistance with your local chamber of commerce and on your secretary of state’s website.
Compile your agreements, forms, and licenses/permits.
Will you be using contractors or vendors? Will you have employees? Draft all your agreements and any forms you will need for these individuals. You NEED agreements and contracts to ensure that all parties are working together and have clear expectations. Keep things organized and at hand. I recommend Dubsado. This platform helps you draft all proposals, agreements, contracts, and more. You can even invoice through it! Plus AMSE members receive a discount on their services.
It has been said over and over in this article, but every state is different! Some may require you to have a permit or business license, even if you are not selling tangible goods. If you live on base or within a community, you may need permissions to operate your business from home. What forms will you need for taxes, including business and sales tax?
Most of us loathe this part of business, but it is a necessary step. Don’t get caught without the right paperwork!
Protect your brand and your business.
This is your baby - don’t leave it without the right protections in place. Consult an insurance agent to see if you need separate legal insurance for your business. Special events and functions may require it outright, so it is best to be prepared. For example, you may need liability coverage in the event that a customer is injured on your premises or at your event.
Look into trademarking your brand and business. You might consider a trademark for your business name or logo; you can apply for a patent on an invention; you can utilize copyright to protect your words or artistic work. You can learn more about whether these are right for you at the US Patent and Trademark Office.
When in doubt about anything concerning your business, go to the experts!
There are plenty of milspouse attorneys and legal experts to guide you on your path to entrepreneurship. You can find them in our Milspouse Business Directory in the most recent Military Spouse Entrepreneurship Guide with Stars + Stripes.
Special thanks to AMSE member Ashley Marshall for her help with this article! Find more about her here.
Rachel is the co-owner and editor of The Military Mom Collective. She has been an Air Force spouse for 17 years and is a mother of four children. She holds a BA in English and a MA in Management. When not busy with work or her family, she enjoys reading as many books as possible and drinking all the coffee.
Rachel is also the Copy Editor at AMSE and a freelance writer. She has been featured onWe Are The Mighty, Her View From Home, AMSE, The Beautifull Project,Hand-in-Hand QC, and other publications. She has been blogging for herself and other organizations for over 10 years. She is always trying to stay on top of SEO practices and loves using the power of experiences and storytelling to empower businesses and individuals.
