Congratulations! You’ve made the decision to leave the corporate rat race behind and start your very own business or franchise in Florida.
While these are exciting times, nothing will dampen your entrepreneurial enthusiasm faster than a major lawsuit or a nasty contract dispute.
To avoid having the rug pulled out from under you before you’ve even had a chance to get going, here are some common pitfalls to avoid when starting a business in Florida.
Not Having Founders’ Agreements:
Founders’ Agreements remove the mystery around what the founding parties are expected to contribute, what the equity breakdown is, and what roles individuals are expected to play.
Choosing the Wrong Corporate Entity:
While this step feels like a formality, it is actually critically important in determining how your business will be run. Choosing to run your business as an LLC, C Corp, S Corp, etc. has long term implications, and changing the structure further down the road can get extremely complicated and expensive.
Failing to Protect your IP:
With Intellectual Property being central to the value of many startups, failure to protect your IP through NDAs and Patents leaves your new company vulnerable. Don’t let someone else profit off of your great idea.
Not Hiring a Startup Lawyer:
You need a lawyer who is deeply familiar with the startup world, Angel and VC funding, as well as the securities laws in place in Florida and at the federal level.
Hiring a skilled corporate attorney who specializes in startups will help you avoid these pitfalls and mitigate your risk as you pursue your dream of owning your own company.
The attorneys at the Law Offices of Paul J. Burkhart, PL are here to help you make that dream a reality. For more information on starting a business in Florida, call 561-880-0155 or visit paulburkhart.net.