and Peace of Mind
Few employment prospects offer as much earning potential and freedom as owning your own business. There are liabilities and risks associated with being a business owner, however, that people who work for other entities rarely face. As such, it is essential that anyone who owns or is considering starting a business to speak with an attorney about the consequences of certain decisions and to learn what measures they can take to protect their company’s interests and assets. Patrick McGlashan of McGlashan Law, P.C. is a seasoned New York business attorney who is proficient at offering individuals and entities advice regarding business matters, and if you engage his services, he can assist you with navigating the complexities of business formation and administration. Mr. McGlashan has an office in Manhattan, and he frequently offers people business services in Manhattan and throughout New York.
One of the first decisions any business owner must make is choosing a structure for their company. New York permits businesses to adopt many forms, including corporations, LLCs, general partnerships, and sole proprietorships. Each entity offers benefits, and which is most appropriate will depend on the business owner’s unique circumstances. Typically, however, parties choose to incorporate or create an LLC.
Parties that want to form LLCs must abide by the New York LLC law, which establishes the requirements for forming, naming, and operating an LLC. Among other things, the LLC law dictates that an organizer must draft, execute and file Articles of Organization. Similarly, parties that want to form a corporation must comply with New York’s Business Corporation law, which states that each incorporator must sign a Certificate of Incorporation, which then must be filed with the state.
A sound business idea is inconsequential without funding, and many business owners look to outside investors for capital. An attorney can assist any business seeking outside funding in developing a thorough business plan that will explain the business’s goals and potential profitability, which is essential to appeal to investors.
An experienced attorney can also help potential business owners explore funding options, like friends and family, equity crowdfunding, angel investors, venture capital, and other methods, and weigh the benefits and drawbacks of each type. An attorney can also help business owners negotiate with investors to ensure that they obtain favorable financing terms and structure agreements.
In addition to establishing the structure and funding for a business, business owners should consider whether they should take additional steps to prevent their employee’s behavior from adversely impacting their business. For example, if their company has propriety information or valuable trade secrets or relies on client relationships to produce income, it may benefit them to have their employees sign restrictive covenants. In addition, they may ask an employee to sign a covenant not to compete, which restricts them from working in a specific geographic area for a certain amount of time or communicating with the company’s clients, if they leave the company’s employ. Non-disclosure agreements bar employees from disclosing a company’s confidential information and trade secrets. If such agreements are not drafted in accordance with the law, they may not be upheld; accordingly, it is smart for anyone contemplating asking their employees to sign restrictive covenants to seek the assistance of an attorney.
The best way for business owners to protect their reputation and assets is by making reasoned and well-informed decisions during the process of forming their company. It is smart for anyone who wants to start a business to speak to an attorney about what steps they should take to safeguard their rights. Patrick McGlashan, the founder and managing attorney of McGlashan Law Firm, P.C., is an experienced business services attorney who is well-versed in what it takes to turn business ideas into successful ventures, and if you hire him, he can help you face the challenges associated with forming and operating a business in New York. Our office is located in Manhattan, and we regularly represent people in business litigation matters in Manhattan and throughout New York. You can reach us to set up a confidential meeting by using our online form or calling us at (212) 203-8738.