I have advised many startup companies on whether to operate as a sole proprietorship, limited liability company, corporation or partnership. I also represent individuals purchasing existing businesses.

STARTING A BUSINESS

One of the first decisions that you will probably make when you start a business is choosing the form of organization that your business will take. You may choose to operate as a sole proprietor, a limited liability company, a partnership or a corporation.  Some issues to consider when choosing a form of organization are future plans for the business, investors' preferences, and tax considerations.  Most forms of organization require the execution of documents to create and maintain the entity, such as Articles of Organization and Bylaws for a corporation and a Certificate of Organization and Operating Agreement for a limited liability company.

When you first start out, you may also need noncompetition, nonsolicitation and confidentiality agreements with your employees, or agreements with independent contractors with whom you will be working.  Some businesses, such as those in the specialty food industry, will need contracts with businesses who are packaging and/or delivering their products.  Other concerns of new businesses include obtaining necessary licenses from the city or town where the business is located, and compliance with laws covering workers' compensation and unemployment insurance.

BUSINESS LEASES

Signing a lease is a major business decision. A proposed lease may look fine to you at first reading, but it's important to take some time to consider a lease before you sign it. Think about your projected business needs over the next several years, and whether or not the property you are considering will meet those needs. Some questions to ask yourself include: Is there room to grow? Is the lease long enough to justify my build-out costs? Does the amount of rent fit into my business plan? Is the property zoned for my intended use?

A landlord may be willing to negotiate many of the lease terms. Don't be reluctant to ask for changes. Some requests that you might want to make include the following: If there is other space in the building, ask for a right of first refusal to rent that space if the current tenant moves out. Ask for an option to extend the lease after the initial term is over. Request the right to assign or sublet the leased premises in case the space doesn't work out for you or you have to close your business.

Make sure you understand everything in your lease before you sign it.