By Ross Keilen
With the changing business climate brought about by a global pandemic, comes opportunity. New business ventures born during turbulent times have a unique kind of resilience. Those created from the ashes of traditional organizations often have the flexibility and innovation to become long-term success stories.
Business Opportunities
The months since COVID-19 became recognized as a global humanitarian challenge have seen economic and social unrest on an unprecedented scale. Existing businesses are suffering. Companies that could not weather the uncertain conditions have closed permanently as financial and economic concerns become insurmountable. Business applications are down throughout the country as citizens readjust to the new normal.
As Michigan reopened throughout June and the stay-at-home order relaxed, budding entrepreneurs had the opportunity to see what needs were left unmet and seek opportunities in industry segments that needed a new way of thinking and operating. Despite the increase in novel coronavirus cases and the changing business climate, many types of companies are thriving. Whether you have always wanted to run your own restaurant or brewery or a business that utilizes telecommuting and digital services, this may be the perfect time for you to start your own business.
Legal Guidance in the Age of COVID-19
Attorneys who specialize in corporate law can help you get started on the right foot in various ways, starting with choosing the right entity type for your business. Although it can be changed later, selecting the best fit from the beginning can save you headaches down the road. Although there are many options, these are the most common entities:
Partnership
This is an agreement between two or more entering into a business relationship. Deciding whether it is a general or limited partnership determines the business terms. The type of partnership defines who has the authority and control, liability, and responsibility for day-to-day operations.
Limited Liability Company
LLCs are flexible and provide liability protection for the owners. It is a hybrid between a corporation and a partnership. However, if your goal is to take an investment to expand your business, a corporation may fit your needs best.
Corporation
This traditional, legal entity allows you to take investors and separate yourself from the corporation’s debts. It also has a strict governance structure, including the executive team that actively operates the business, allows for stock plans, and has provisions for the maximum number of shareholders.
Every business must have governing legal documents that establish the rights and obligations of the owners as well as how it will be managed. Some documents may vary depending on the type of business entity you choose. However, common key elements include Articles of Organization or Incorporation and bylaws or an operating agreement.
Legal professionals can also help you develop HR policies that follow the CDC’s guidelines for employee safety and create requirements for telecommuters. Business insurance policies, small business loan programs, and a variety of tax provisions also add complexity to running a business. Experienced attorneys can help you navigate the complex process of setting up a new company.
Contact Us Today
Small businesses are the backbone of a thriving economy. Having the legal paperwork in order from the day you receive your business license can minimize your risk and ensure you can focus on bringing your vision to life. The experienced team at Keilen Law has expertise in corporate law, from business formations to commercial transactions. They can help you understand Michigan and federal business requirements. Contact us today or call (269) 382-4818 to schedule an appointment to learn more about launching a new business.
Photo Credit: Maridav
