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 Planning A Business
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| There are Many Things to Consider When Forming a Company |
When forming a company, there are several points to consider. There are details relating to the start up process. Some are basic and more obvious, while others are more complex and even subtle. The process can be divided into pre and post formation issues. The pre-formation period is very important. This is the deep planning stage. It is important for the objectives and agenda of the company to be determined prior to the formation of the legal entity. Proper planning prevents problems and ensures a well functioning enterprise. Without planning, a corporation has no rudder and can get off course.
Planning carries over into the years ahead and helps to ensure success.
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| Plan Your Corporate Objectives: |
- Have a business plan. The business plan should outline what you want to accomplish through your business entity. A clear identification of the products/services and who the customers might be is a vital beginning.
- Decide who will be involved in the venture and in what capacity. Who are the stakeholders? What is the percentage interest of each stakeholder in the venture? Defining the roles of all people involved in the venture and their responsibilities leads to harmony and prevents discord.
- Choose a business entity which most closely supports your objectives.
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| Review Structural Issues: |
There are basic points which must be decided, and action items which must be implemented. Decisions must be made as to:
- Accounting and bookkeeping.
- Choice of a Registered Agent.
- Workplace safety and employment law issues.
- Protection of trademarks and copyrights.
- Tax planning and succession planning.
- Insurance and financing issues must be reviewed.
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| Education and Consultation |
Build a knowledge base to implement your goals and aspirations. You will find posted on a regular basis new articles and recommended reading lists. There are also organizations such as your local Chamber of Commerce which provide assistance. Education, even formal education is a self-help proposition. The information you need to make your enterprise a success is available. Knowledgeable people are also available to help you address issues which will come your way.
Operating your own business is challenging but not daunting. Consider regular consultations with your accountant and a qualified business attorney. A small investment in periodic consultation will save you time and money. Two good examples are tax planning and succession planning. Advanced tax planning and building a tax strategy can save money over the long run. This is money which can be diverted to your future and the future of your business. Succession planning is another area which eventually must be addressed. Unfortunately, it is often times discussed after the death or incapacitation of a principle member of the firm. Smooth transitions should be the objective.
Your business is a dynamic enterprise. There are many external challenges such as competing firms. The best way to be prepared for a competitive world is to build the proper business structure and plan from the very beginning. The resources are available.
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| Next: Choosing an entity --> |
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* Pennsylvania Incorporations Plus+ is a service of Gibson & Perkins, P.C, 200 E. State St., Ste. 105, Media, PA 19063 - a Delaware County law firm with a focus on business transactions, real estate, taxation, estate planning, estate administration and succession planning.
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| Copyright © 2006-2008 Pennsylvania Incorporations Plus. All Rights Reserved. Disclaimer |
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