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Important Items To Be Mindful Of As A Start-Up

by | Nov 15, 2022

What is the most important thing that you should be mindful of as a start-up business?
In the future, if you would like to be able to secure capital from prospective investors or you may want to sell your company, then there are two words that I would repeat over and over again, and that is: due diligence.
You always want to start your business being very mindful of what is to come in the future.
What does that mean you might ask? It means that if you are starting a business with a partner, make sure you have either:
1. a founder’s agreement
2. an LLC or corporation put in place
Whatever it may be, get something established so that you have a limited liability and so that you can outline the roles and responsibilities of the partners. Also, with respect to these types of agreements, make sure that there is a working relationship that is feasible.
In other words if you are both 50/50 owners, and you are the only two individuals on the board of directors make sure that you have a third-party person within your board of directors, that can come in and make a determination if and when the two of you are deadlocked, because when I see deadlock provisions neither party ends up winning.
If you are interested in more information and would like to speak with a legal professional at Pitcoff Law Group, PC, call: (646) 386-0990 or email: ross@pitcofflawgroup.com today. We would be happy to assist you.