Launching a new business is annoying. And, if you’re running it solo or with a very small team, you’ll find there is a decent amount of busy work.
We have kept a list of some of the things we think we might need to do if we start a business again (some of this applies to us today). It won’t apply to everyone — and it might not be comprehensive. But, it may be worth reviewing all these items.
CONSIDER EACH ITEM ON A CASE BY CASE BASIS. EACH WON’T APPLY TO EVERY CASE.
WE ARE NOT LAWYERS. ALL CONTENT IS PROVIDED FOR GENERAL INFORMATION PURPOSES ONLY. Nothing here is intended to be legal advice in any way.
- Create Bylaws (for a corporation) or Operating Agreement (for LLC). -Operating Agreement for will include ownership, so ownership questions will need to be addressed.
- This is one of the many areas that follows where a lawyers help may be essential.
- Create Stock Purchase Agreement/Shareholders Agreement/Restricted Stock Agreement and issue stock (for a corporation) – Again, ownership questions will need to be addressed.
- Create a Stock Option Agreement – In some cases, you may issue Restricted Stock to founders, but compensate later employees through stock options.
- Create the entity by filing a Certificate of Formation – In the case of DE, and likely other states, you should receive back confirmation from the state.
- Stay compliant with Workers Compensation Rules – CT state info for context: Forms 6B, 6B-1 and 75 Revised
- Obtain A Federal Tax ID Number
- Register with the Department of Revenue (of relevant state/s)
- Register with the Department of Labor (of relevant state/s)
- File 83(b)s
- File a DBA
- File to do business in the states your operating in (this may be called something like a Certificate of Authority or Foreign Registration)
- Create financing documents (e.g. a convertible note)
- File Documents Related To Financing – For example, a Form D, which is required within 15 days of signing paperwork for the SEC. But, similar filings may be required earlier depending on your jurisdiction, with different time frames. Talk to your lawyer before completing any financing.
- Pay income taxes
- Pay a variety of other taxes (e.g. sales tax, business use tax)
- Pay corporate fees – DE state info for context: Corporate and UCC Fee Information
- File annual reports
- Hold board meetings and maintain minutes – Minutes should include: a record of voting on prior period minutes, who attended the meeting, who presided over it, and what major issues were voted on.
- Hold shareholder’s meetings and maintain minutes
- Maintain a stock ledger
- Open a bank account – It is very important to keep all personal and business activity separate. Opening a bank account for your business helps maintain the separation. Your bank of choice should tell you what you need to bring in order to open the account.
Is there anything you think we should add? Please let us know.