| I've gotten several questions recently about the | | | | "corporate veil," which means that you can't be sued |
| legalities of starting a business. So, this week I | | | | personally for anything that happens in the |
| thought I would address a few of the more common | | | | corporation and your personal assets can't be |
| legal issues most new businesses face. But first, let's | | | | attacked by creditors or a lawsuit on the corporation. |
| get the mandatory legal disclaimer out of the way: | | | | But in order to have this protection, you must act |
| the advice dispensed by this columnist is probably no | | | | like a corporation. This means conducting board |
| better or worse than the advice dispensed by other | | | | meetings, taking notes and publishing minutes in your |
| columnists. Do not take the following advice as | | | | corporate book.In addition, be sure to have a |
| gospel or bet the future of your business on any | | | | separate corporate checking account and, if you |
| advice given herein by said columnist.Agreed? Good, | | | | need them, corporate credit cards. Don't use |
| let's proceed.To begin, here's the best legal advice I | | | | corporate money for personal purchases, and vice |
| can give you as a new business person: find yourself | | | | versa (unless you file an expense report). Many |
| a good lawyer and make him or her your very best | | | | people think they don't need to go to all this trouble |
| friend. Granted, your new best friend will charge you | | | | if there is just one or two people in the company, |
| an hourly fee for chatting on the phone or talking | | | | but in order to be treated like a corporation, you |
| business over lunch, but you'll find it to be money well | | | | must act like one. Your attorney can give you more |
| spent. A good attorney can save you far more than | | | | details.How do I register my company name? To |
| the cost of his services. I rarely make any decision | | | | register your company name simply contact the |
| that has the potential to impact my business without | | | | office of the Secretary of State. This is easily done |
| first consulting my attorney.You can locate an | | | | by phone. The registrar will tell you if the name you |
| attorney through legal referral services or just by | | | | have in mind is available as a corporate name and will |
| opening the phone book, but the best way to find a | | | | reserve the name for you if it is available. You will be |
| really good attorney is to ask other business owners | | | | sent a form to complete and submit with a nominal |
| for references.You want an attorney who specializes | | | | fee. For more information you can also visit the |
| in business matters. A few of the things you may | | | | Secretary of State's website.Do I need a business |
| need legal help with are: legal business formation, | | | | license? Nearly every business will require a county or |
| articles of incorporation, trademarks and copyrights, | | | | city license. Luckily, such licenses are relatively easy |
| investment documents, employee policies, etc. You | | | | to obtain and are not expensive. For local licensing |
| may find that a single attorney can't meet all your | | | | requirements, contact your city or county |
| needs, but if you use a larger firm they will have | | | | government offices.Some businesses might also |
| attorneys on staff that can provide the specialized | | | | require a state license. For example, hair stylists, |
| services you require.Now, let's take a brief look at a | | | | contractors and most businesses serving food fall |
| few questions I've received regarding the legalities of | | | | under the purview of the state licensing board. Each |
| starting a new business.What's a DBA? "DBA" stands | | | | state has an agency that deals with these types of |
| for "doing business as." A DBA is another name that | | | | businesses. Contact your local government offices to |
| you use in the operation of your business other than | | | | see if your particular business requires a state |
| the legal name. For example, "Jones, Inc." might be | | | | license.Some businesses will even require federal |
| the legal corporate name of your business, but you | | | | licensing. Examples of such businesses would be |
| might use "Bob Jones Landscaping" as the everyday | | | | those that provide investment advice or that deal |
| business name. In this case, you would see the | | | | with firearms. Federal licensing is typically required for |
| business described in legal context as "Jones, Inc. | | | | businesses that are highly regulated by the |
| Doing Business As Bob Jones Landscaping."Here's an | | | | government.I operate my business out of my home. |
| example of using a DBA to launch a new venture | | | | Do I still need a license? Operating a business out of |
| within an existing business. A reader asked: "My wife | | | | your home does not get you off the hook when it |
| incorporated a multimedia business three years ago, | | | | comes to licensing. You should check local zoning |
| and I am starting a voice-over business. Is it more | | | | requirements and property covenants. You can find |
| beneficial for me to open as a sole proprietorship or | | | | this information at the court house or by calling your |
| to operate within her multimedia business?"My | | | | local license department. Home businesses are also |
| answer was that he should open his company as a | | | | subject to zoning laws that regulate how property |
| division of his wife's business, operating as a DBA. | | | | can be used and may restrict various activities.This is |
| Even though he is using his own business name (the | | | | just a sampling of the legal issues that must be |
| DBA), technically his wife's corporation is launching the | | | | addressed by every new business owner. To learn |
| service and therefore will give him some liability | | | | more, take your favorite lawyer to lunch.Just be |
| protection. Doing so would also help him save on | | | | prepared to pick up the tab.Here's to your |
| start-up costs (such as having to pay for a separate | | | | success.Tim KnoxTim's latest book is "The 30 Day |
| incorporation). It's relatively simple to keep a separate | | | | Blueprint For Success!" We asked 58 Top Internet |
| set of books, and when the new business takes off, | | | | Money Makers: If you lost is all tomorrow and had to |
| he can spin it off into a separate entity.Will a | | | | start from scratch, what would you do to be back |
| corporation protect me from liability? It can, if | | | | on top in the 30 days? Their answers just might |
| handled correctly. You may have heard about the | | | | make you rich! |