Each year, many individuals open successful new businesses in Texas, but if an entrepreneur is not prepared, they can make some mistakes in the initial start-up phase. Here are a few tips to help you avoid three of the more commonly made mistakes when opening a new business in Texas.
Ignoring tax considerations
Most individuals either prepare their taxes themselves, or hire someone to do it for them. However, tax preparation looks much different when starting a new business. Many entrepreneurs aren’t ready for certain tax issues that arise at the federal, state, and local level when starting a new company. When considering the financial and legal problems that tax-related mistakes cause, this isn’t something you want your business to mishandle.
Choosing a problematic company name
One of the most important considerations during the business planning and formation stage is what you’ll name this company. Before you make anything official, ensure that your new company’s name is not already taken by another entity in the state, doesn’t cause any trademark issues, international translation problems, or anything similar.
Not keeping track of your documents
Forming a new business means preparing, completing and saving a lot of documents. With that in mind, many newly-formed companies forget the importance of proper document maintenance. To avoid this problem, properly store all of your company’s signed contracts, stock records, job applications and tax forms in a secured location in your business, or ask your business formation attorney if they will keep these copies in their office or have suggestions for where you can deposit these documents for safekeeping.
There are several big mistakes that many entrepreneurs make when starting a new business, so if you need help forming a new company, it might be time to contact a business formation lawyer. With experienced legal counsel in your corner, you’ll have more peace of mind when opening a new business, and your attorney can help guide you through the process, instead of you being left “out in the woods” to figure it out by yourself.