Keys steps to starting your own business

A new year, a new beginning. If becoming your own boss was a New Year’s resolution and you are
actually doing it, then first of all congratulations! It takes guts to become self-employed but for many
people, the benefits outweigh the risks. How you get from point A to point B is completely up to you
now and, if you do it right, your earning potential is unlimited.
Thursday, 31 January 2019

2019-01

If you’re starting a business this year, there will be a lot to think about. Are you starting from scratch,
or do you want to buy an existing business or a franchise? Buying a business gives you a known
name, some structure, and a client base. Starting a brand-new venture gives you the chance to do it
your way, without having to spend too much money acquiring the business.

“Whichever you choose, one of your first decisions will be what legal entity to use. Will you operate
as a sole trader, a partnership, or a limited company? Each entity has its advantages and
disadvantages when it comes to tax rates, creditor protection, compliance costs, and so on. Even if
you're in business on your own, you expose yourself to personal risk if you haven't set up a legal
business entity,” says Paula Lines of The Law Shop.

“Unless you intend to work from home, you’ll need to look at business premises or an office, which
usually means reviewing a lease. You’ll have to choose an accountant and accounting system, learn
about payroll and tax obligations, find a banker, and organise insurance,” she says.

“A desire to fill out legal forms isn't the reason you want to go into business, we get that. But if you
are going to start a business, or if you are serious about buying one, do see us at The Law Shop first.
If you get your ducks in a row from the start, you can avoid unnecessary risk,” Paula explains.

If you are going into business with a co-founder or partner, you’ll need a solid partnership
arrangement. You don’t want to find yourself in a nasty legal battle if disagreements come up, and
that is likely if things go wrong and you don’t have a legal document that outlines the details.

“Our team can help draw up a partnership agreement that works for you both. No matter how much
you think you are on the same page right now, do not get me started on the horror stories. It’s a
smart move to document everything from day one,” Paula says.

The Law Shop works with all sorts of businesses, from start-ups through to corporations with 100+
staff. They know all there is to know about business law and can help and advise you at any time of
your journey.

Contact The Law Shop’s Rotorua or Tauranga office today if you need practical and professional legal
advice for your business. It will be delivered with a no-nonsense approach. Just pick up the phone, or
visit www.thelawshop.co.nz when the time has come to get things started.

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