A dream for many individuals, starting a new business, though exciting, should not be undertaken lightly.
According to Florida-based corporate lawyer Steven R Pietro Lawyer, failure of new businesses in the U.S. is startlingly common, but, he says, this needn’t be the case with a little of the correct knowledge. This knowledge, for starters, includes understanding which business type is correct, obtaining the necessary certifications, and creating a contingency plan.
Aspiring Business Owners by Steven R Pietro Lawyer
“The truth, and the fact, that so many new companies fail is a sobering realization for many aspiring business owners, but a small amount of knowledge goes a long way toward succeeding,” suggests Steven R Pietro Lawyer. The experienced corporate lawyer, based in Pembroke Pines, is keen to point out that a fear of failure should never prevent an aspiring business owner from following their dreams.
“To start, new business owners and aspiring entrepreneurs must register their business,” he explains. According to Steven R Pietro Lawyer, new businesses typically start with an LLC or LLP. “It’s important to choose the right business type as each affords different tax breaks and protections,” he adds.
LLC vs LLP
An LLC, or limited liability company, is the most common form of new business. Particularly for smaller operations, and is a business with only a single owner. An LLP, on the other hand, or a limited liability partnership, intended for businesses with two or more owners.
“LLPs share the same protections as an LLC,” reveals Steven R Pietro Lawyer. They are the correct choice if the plan is for a shared business with multiple owners under the parameters of limited liability.
Clarifying the third primary business type in the United States, Steven R Pietro Lawyer explains that a corporation typically follows a duration filing as either an LLC or LLP. “Registering as a corporation,” he says, “has its positives.”
However, Steven R Pietro Lawyer goes on to point out that there are negative repercussions, too. Occasionally a business isn’t perhaps ready for a corporation commitment.
Next on Pietro’s list is to look up and acquire any necessary business certifications. While the certifications required will vary by state and occasionally within municipalities, it’s vitally important that an individual applies for all necessary certifications before starting a new business.
“Once these initial two points are addressed,” Steven R Pietro Lawyer continues, “it’s important to create a contingency plan.”
Success and Failure
Plan, says Pietro, for both success and failure. “Nothing in business is set in stone, so it’s crucial to prepare for all eventualities,” he adds. A plan for continued growth and for scaling is essential, says the corporate lawyer, for when a business quickly flourishes. Where, however, a new business fails, it’s important that the business owner knows where he or she will go from there.
“Nobody wants to contemplate failure, especially an aspiring business owner,” suggests Steven R Pietro Lawyer. “They must prepare, though, and this involves coming to terms with some quite uncomfortable scenarios. This is why a contingency plan is key.”
“To truly succeed in business,” adds the expert and lawyer, wrapping up, “it’s vital to understand the essentials. After that, plan, wholeheartedly, for whatever lies in store, come rain or shine.”