We often talk about business as though its only goal is growth and profit. Certainly, a for-profit enterprise needs to make money. But it can also do some good for the community.
With the summertime comes a flock of food trucks on the streets of many other American cities, and especially in and around Denver. Just a decade ago, food trucks appeared to be no more than a trendy update to the lunch wagons and taco trucks of old. Now they represent a $2 billion industry.
When you are starting a new business, you have a lot on your mind. You have to get your product or service ready for market, you have to find a market, deal with suppliers, hire employees, find office or retail space and keep track of thousands of details.
If you are starting a new business, you have to make a lot of decisions quickly. You have to figure out how to develop your idea into a working business, how to hire employees and attract customers. You may even have to figure out where you are going to work.
Simply put, whenever two or more people own a business together and share in its profits and losses, they are said to have a partnership. However, it is always a good idea to get a partnership agreement in writing, so as to make sure everyone has the same expectations. A written agreement can save a lot of headaches later on, if or when the partners have disputes or decide to part ways.
Choosing the correct legal formation for a new business is crucial. This choice will have major legal and financial implications for the future. It will determine not only the amount of taxes owed, but also whether or not the business qualifies for certain types of funding.
Many entrepreneurs in Colorado will decide that they want to open their own small business. Part of the business formation process includes obtaining any necessary federal and state licenses and permits. These licenses and permits are required by law if the activities the business engages in are regulated by federal or state agencies.
Business partners in Denver often share the same passion for their jointly-owned enterprise, but it is still important to ensure that they have the same expectations about their respective roles in the business and a set of rules on how their business should be run. Therefore, they may want to execute a partnership agreement as part of the business formation process. Not only could such an agreement resolve disputes before they occur, but without one the business may be governed by state law.
In a sole proprietorship or partnership, generally the owners of the business can be held personally liable for the debts and actions of the business. This is obviously not desirable to most small business owners in Denver. Fortunately, there are other ways to structure a small business that limits the business owner's personal liability for the debts and actions of the business.
Starting your own business or purchasing an established business in Colorado is an exciting endeavor, but it can also be an overwhelming one. For example, while you may have a grand vision in sight for your new business, it is necessary to ensure that all legal formalities are met -- something many people do not have much experience with.