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Although being a business owner is considered the American dream, the process of starting a business is often exhausting. In addition to the high cost associated with starting a business , there are also substantial legal hurdles that a business owner must overcome before being able to receive any benefits.

It's all in the name

Often, individuals do not know where to start when trying to create a new business. The very first step of the process is usually the naming of the business. Given the high competition present in today's society, it is imperative for a business to protect not only its assets, but also its name. As part of the start-up process, business owners must chose a name and then register it with the New Jersey Department of the Treasury. The business does not have to be "open for business" to be eligible for name registration. Therefore, in order to protect itself, the business's name should be registered at the very beginning of the start-up process.

Legal formalities

The next step of the start-up process often has the most substantial effect on the business's future. An appropriate business structure must be selected. Structures include sole proprietorships, limited partnerships, limited liability corporations and corporations. This part of the process is often the most difficult, as there are many complex factors that must be evaluated. In deciding which type of business structure is most appropriate for a new business, an individual must consider many complex factors such as capital, taxation and even the extent of liability that each owner will be responsible for.

Once a business structure has been selected, those involved in the start-up must make many decisions regarding the internal structure of their business, all of which can be documented. The most common documents drafted are the company's bylaws, partnership agreements and employment agreements. All of these documents are important to the business, as they essentially dictate the rules and regulations the new company must adhere to internally. Obviously, there are substantial amounts of money that can be affected by these documents, and therefore it is essential that they be drafted in a cohesive manner.

Of course, the necessary documents the company must draft will depend on the business structure chosen. However, once all of the documents have been drafted and executed, the company must file certain documents with the state. It is important for these documents to be properly filed, because improper filing can result in the business not being recognized in the state.

Ensuring a business's prosperity

Given the years of hard work and massive amounts of money new business owners invest in achieving their dreams, it is imperative for them to adhere to all the regulations mandated by the state. Given the legal complexities of this process, an individual should rely on the help of an expert. If you are in the process of starting a new business, contact an experienced business law attorney. An experienced attorney will discuss all possible options with you and will help ensure you are doing what's best for you and your company.