May 31st, 2022 in Business Planning and Professional Practice
Starting your own practice will give you a chance to serve your clients on your own terms, try new approaches, and structure the firm in a way that works best for you. However, it can also be frightening because of the uncertainties associated with new ventures. You may ask, “Is it Time to Start My Practice?”
Running a business adds a myriad of new financial, management, and legal responsibilities. That’s why you need to seek the guidance of a Raleigh legal planning team. While economic and management irresponsibility might sink your business, failing on the legal ones can attract lawsuits and other liens.
Is it Better to Go Solo or Find a Partner?
One of the most critical decisions to make when starting your own practice is whether you want to own it alone or bring a partner on board. Business partners can come with different business insights, relationships, experiences, or money.
Research shows that 6% of high-growth companies are run by individuals, while partners run 94%. But to know whether it’s ideal to start solo or with a partner, you might have to think about the legal and tax implications of the business unit.
Does Business Location Matter When Starting My Own Practice?
The location of your business is critical to its success. Every area is subject to a specific city, county, and state regulations. These are some of the questions you can ask yourself when looking for the ideal place:
- How many other similar firms are there in the area?
- How many people live or work in the area and might need your products or services?
- What are the fees and tax responsibilities for small businesses in the area?
- What services can you legally provide in the area?
- Are there businesses in your niche that are on sale?
- Is it financially feasible to start from scratch or buy an existing practice?
The U.S. census data can give you an idea of the demographics of various regions, and a Raleigh business start-up lawyer can provide legal guidance.
How Important is a Business Plan?
You might have an idea of how you plan to run your own practice, but drafting a business plan is a great way to document everything. It should cover your goals and values, hiring, financing, sales, and operation plans.
It can serve as the foundation and driver for your business. Here is what you need to think about when preparing a business plan:
- How determined you are to succeed.
- My willingness to sacrifice your time and lifestyle to work in the business.
- What happens if the business doesn’t work out?
- The number of employees the company will have.
- Its annual revenue in a year or five years.
- Its expected market share in one or five years.
- If it will cover a broad spectrum of goods and services or a specific niche.
- Plans for geographical expansion.
- If you will be a hands-on manager or you’ll delegate duties.
- If it will remain privately-owned, independent, acquired, or go to the public.
What Types of Business Entities Can I Start With?
Part of the legal requirements for starting a new business is proper registration. No firm is the same as another, and what works for one venture might not work for another. You can open your new practice as a:
- Non-profit
- Corporation
- Partnership
- Sole-proprietorship
- PLLC or PC
- LLC
Each of the above entities has different tax obligations and limits on liability. A skilled business start-up attorney in Raleigh, NC, can listen to your needs and budget and advise you on the most favorable way to get into business.
How Can I Ensure that I Meet My tax Obligations?
Your choice of business entity significantly determines your tax obligations. For instance, a non-profit organization might not have the same tax obligations as a PLLC. You will also need to select a tax year to use in the new business.
Fiscal year
This can be any 12 consecutive months ending on the last day of any month, other than December.
Calendar Year
This will be the 12 consecutive months beginning on the first day of January and ending on the last day of December.
Note that North Carolina takes tax matters quite seriously, and tax mistakes on your part can cost you. So, ensure that you seek legal guidance from the onset.
What are the Legal Requirements for Hiring Employees in My Own Practice?
If you plan to hire employees, it is critical to adhere to all the legal requirements. As you plan on putting together a winning team, here is what you will need:
- An Employer Identification Number (EIN)
- To file your taxes according to local and federal regulations
- To display posters explaining labor laws and employee rights
- To get workers’ compensation insurance
- To report newly hired and rehired employees with the state of North Carolina
- To verify employment eligibility
An experienced Raleigh business start-up lawyer can help you get organized and stay informed on the most current requirements in North Carolina.
Why Do I Need an Attorney Before Starting My Own Practice?
Starting a new business is more tasteful than most people think. Many people have let go of their dream of starting their own practice after being overwhelmed by the requirements. This is common when a professional decides to handle everything on their own.
Setting up a business successfully needs the help of someone experienced in legal matters. They can handle all the paperwork while you focus on perfecting your skills on service provision in your new practice.
A Legal Team Helping Businesses with Proper Planning
Raleigh residents encounter a lot of roadblocks when starting out their own ventures. The federal and state governments have laws meant to regulate business operations. But the various legal requirements are the reason why many skilled and experienced persons are stuck in employment.
If you desire to break the glass ceiling and live your dreams of self-employment, the legal experts at NC Planning can guide you. We can handle liability, mergers, acquisitions, trademarks, and licensing issues. Talk to us today for proactive and invaluable help in Raleigh, NC.
