10 Crucial Legal Steps in Starting a Business

1. Choose the type of business entity. There are a variety of business entities to choose from, each with its own benefits and drawbacks. The most common types of business entities are corporations, limited liability companies (LLCs), Sole proprietors, and partnerships.

2. Draft and file articles of incorporation (or organization). This document will set forth the basic information about your business, such as the name of the business, the purpose of the business, the shareholders (or members), and the management structure.

3. Appoint a registered agent. In most states, you must appoint a registered agent to receive legal and tax notices on behalf of your business.

4. Obtain business licenses and permits. Depending on the type of business you are starting and the location of your business, you may need to obtain various licenses and permits.

5. Open a business bank account. This will help to keep your business finances separate from your personal finances.

6. Draft and execute an agreement between the shareholders (or members). This document will set forth the rights and responsibilities of the shareholders (or members).

7. Draft and execute an agreement between the company and the owners. This document will set forth the terms and conditions under which the owners will lease or loan money to the company.

8. Draft and execute an employment agreement. This document will set forth the terms and conditions of employment for your employees.

9. Draft and execute an agreement for the purchase or sale of the business. This document will set forth the terms and conditions of the sale or purchase of the business.

10. Review your insurance needs. You will want to ensure that your business is adequately insured against possible risks.

or you can hire a lawyer to help you with all the steps.