Business plan basics for starting a law firm

Your business description is an explanation of what your company does, the industry your business is operating in, and what differentiates your business from others.

Business plan basics for starting a law firm

By Richard Harroch In: Starting a Business Starting a business entails understanding and dealing with many issues—legal, financing, sales and marketing, intellectual property protection, liability protection, human resources, and more.

But interest in entrepreneurship is at an all-time high. And there have been spectacular success stories of early stage startups growing to be multi-billion-dollar companies, such as Uber, Facebook, WhatsApp, Airbnb, and many others.

In this article, I give an overview of 35 key steps for entrepreneurs who are starting a business, with links to additional articles addressing some of the topics in more depth.

Entrepreneurs often fail to appreciate the significant amount of time, resources, and energy needed to start and grow a business. Here are some of the biggest challenges to starting and growing a business: You will almost always want to start the business as an S corporation giving you favorable flow through tax treatmenta C corporation which is what most venture capital investors expect to seeor a limited liability company LLC.

None of those are particularly expensive or difficult to set up.

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My personal preference is to start the business as an S corporation, which can then easily be converted to a C corporation as you bring in investors and issue multiple classes of stock.

Many business owners, however, are under the mistaken impression that they are completely protected from personal liability by filing a Certificate of Incorporation for a corporation. This is not true. The mere process of incorporating does not completely protect the business owners.

To lessen the likelihood of such personal or shareholder liability, you should make sure to adhere to certain procedures: Always use the corporate name. Always use proper signature.

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This means that you will sign on behalf of the corporation, using the name of the corporation and your title. You should typically use the following format when signing contracts on behalf of the corporation: This includes following bylaws, issuing stock properly, holding meetings of the Board of Directors, recording the meeting minutes, and following other corporate formalities.

Make sure to keep funds separate. Corporate funds and the funds of individual shareholders should not be in the same accounts or combined for any reason.

Make sure to keep taxation separate. The company taxes should be paid entirely from corporate accounts and separate tax returns filed for the corporation.

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All transactions made by the corporation should be clearly separate from any individual transactions. Essentially, by never blurring the line between individual shareholders, owners or the Board of Directors, and the company which stands as a separate entityyou run less risk of any personal liabilities for the debts of the business.

Come Up With a Great Name for Your Business Selecting the right name for your startup can have a significant impact on your business success. The wrong name could result in insurmountable legal and business hurdles.

Here are some basic tips on how to name your startup: Conduct a thorough Internet search on a proposed name.The IRS allows corporations to choose to be taxed as either a "C corporation" or an "S corporation." Income from C corporations are subject to double taxation; that is, the corporation pays taxes on its net income and then the shareholders also pay taxes on the income that they receive from the corporation.

The most effective business plans contain four key sections. The first is the executive summary, which is considered the most important section of the iridis-photo-restoration.com section will summarize your business plan by including a general description of your firm and the area(s) of law you plan to practice, where you plan to take your firm and why your firm .

Schwimer Weinstein, LLP, is a boutique civil litigation law firm in Los Angeles that is distinguished by the experience, quality and dedication of our attorneys in the aggressive pursuit of our clients’ goals.

business plan basics for starting a law firm

Create Your Financial Future. Set realistic financial goals and put them into action with the help of a CERTIFIED FINANCIAL PLANNER™ professional who is a .

Schedule 2 employers (500 or fewer employees in the U.S.)

10 step business plan template. Quick-focus planning for growing businesses. Starting a Business Starting a business always begins with an idea. But entrepreneurs must be savvy about devising business plans, securing small business loans, and making any number of critical moves that can make or break an organization.

Sample Law Firm Business Plan: A Quick Guide for You