At business formation, all businesses need a good foundation, and that means the structure of your business entity and how you manage it. Whenever I’m explaining to people how business entities work, I like to use an analogy. Let’s say we’re all sitting at a conference table, you, me, whoever else is with us, and we’re all sitting in our own chairs. We also have to pull up an empty chair for your business entity because, in the eyes of the law, a business entity is a separate person, so it needs its own chair. It takes its own action. The problem becomes it doesn’t have a physical body to take its own actions, and so we have to take action for it. But how does anybody know when we’re taking actions on behalf of ourselves versus taking action on behalf of our business?
You absolutely cannot mix personal actions with business actions. They have to stay separate. That’s how you protect yourself from business liability. It creates that liability shield. So there are specific ways that you have to take action when you’re acting on behalf of your business. There are certain statutory requirements that have to be met, and it’s important that you get it right from the beginning when you’re first setting up your business – so that you create the liability shield from business formation and you establish that good foundation.
When we’re setting up a business entity, we can help you set up the business in the right way so that it provides you with that good solid foundation with a liability shield right from the beginning. When we set up a business, we conduct an orientation with the business owner, and we explain how the entity works, how you go about managing it day-to-day moving forward. We provide checklists, templates, and instructions, so you know what you’re doing, and you can do it in the right way.
If you’re already in business and you already have your entity set up, maybe you did it yourself, or maybe you pieced things together, and you want to make sure it was done correctly. We do an audit of businesses to see if there’s any missing documentation or if anything was done incorrectly, and then we can go back in and fill in the missing pieces or make those corrections. There are certain legal documents that are required that many people miss, and those documents serve to help create that liability shield.
So if you want to make sure that everything’s in place and you have this nice strong foundation to continue with your business, we can help you do that through an audit. If you have any questions or you want to meet with us, give us a call at our office at 904-860-3111, or take a look around our website. We have a lot of resources available for small business owners.