Having an idea for a great new product or service is the first step toward building a successful Indiana business. But turning the idea into a profitable enterprise requires careful business planning.
One of the most important decisions that must be made at an early stage of the business is the choice of business entity. For a small business run by one person, a sole proprietorship may be sufficient. But if the business is to expand, it is usually necessary to form a corporation, LLC or partnership. All of these entities have their advantages and disadvantages. Choosing the right one will depend on a number of factors including how the business will be managed, whether all persons with ownership interests will have voting rights, whether the business plans to go public with its stock, and the most favorable tax treatment of business income, among many others.
Once the business entity is chosen, it will be necessary to prepare the appropriate documents such as articles of incorporation, bylaws, shareholder agreements, buy/sell agreements and operating agreements. Drafting these documents will require the business owners to make some fundamental decisions about how the business will be governed, how ownership interests will be transferred, and the like.
Other important steps in planning and growing a new business include obtaining financing, issuing stock, negotiating a commercial lease and entering into contracts with vendors and distributors. Protecting the business’ intellectual property is also critical and must be addressed at an early stage.
All of these decisions and more can be made a lot more easily with the advice and counsel of a full-service business law firm. At Carson LLP we are committed to working with entrepreneurs and business owners to help them turn their business ideas into reality.