Forming a company can seem like a fairly straight forward process, but mistakes often occur during the process. Some of these mistakes can be easily avoided, especially with an attorney to look over the paperwork. Here are some of the more common mistakes to avoid:

1. Typos

This may seem small, but a typo or spelling error in the company name or address could have a big impact on the company. Paperwork should definitely be reviewed a couple of times by different sets of eyes to make sure there are no spelling errors present.

1. Wrong Type of Company

There are many different types of companies available and they each have distinctive features that make a huge difference to the operation of the business. Talk it over with an InnovaCounsel attorney before deciding which type of business entity is the best fit for the business.

1. Business License

A corporation or LLC is not the same as a business license. Make sure to get the necessary licenses for the type of business being operated. Different licenses may be required at a local, state or federal level depending on the type of goods and services being offered. Obtaining the proper licensing will be less expensive than getting hit with fines for operating without them.

1. Online Forms; Documents Filed by Existing Companies

People often think online forms are a fast and inexpensive way to form a business, but they don’t offer the help of a real attorney. New businesses often have some uniqueness which may not be best served with a cookie cutter business form.

Conversely, it is very risky to copy a document that an existing company has filed. It may have been tailored in ways that could hurt the unsuspecting newbie.

1. Protecting IP

Intellectual property is important to any new business. Take the necessary precautions to protect this IP, including setting up a non-disclosure agreement for all of the business partners to sign.

Get the company started on solid footing with the help of an InnovaCounsel attorney. They can assist with completing necessary forms, reviewing, guiding decisions, and filing paperwork on time. Those forming new businesses should contact them early in the process.