Advice from a business attorney – Don’t make these three mistakes when forming a new company

Staring a new business is significantly more fraught with potential risks than it is with the potential for success. With three out of four start-ups failing according to the Wall Street Journal, it’s more important than ever to have a strong team which includes an experienced business attorney on your side. Here, we examine three of the most common and devastating mistakes made by entrepreneurs looking to establish a new company:

  1. Not spending enough time on your business plan: Your business plan lays the groundwork for how your company is going to grow, giving you flexibility and vision whilst restraining unviable or over-ambitious ideas. This plan will show how you are planning to fund your venture, market analysis for the industry in which you will be operating, your basic business structure, marketing structures, financial projections and details about your products. As such, it becomes a manual for making decisions and taking your business down the desired path – and without it, companies can easily lose their focus and not know where they are going and how to get there.
  2. Lack of comprehensive financial planning: It can take anything from months to years before your business is able to support itself and pay off any debts, so it’s vital you have access to sufficient capital as well as professional expertise on how to spend it. It’s also important for your financial planning to include a sound contingency plan for events that are beyond your control. The recent global economic crisis illustrates just how suddenly events can overtake a business through no fault of its own, with devastating consequences.
  3. Not prioritizing legal expertise at an early stage: Having access to a business lawyer is something many business owners only feel is necessary when facing a legal problem. This is a significant misconception whereby lawyers exist to put out costly fires rather than preventing the fires in the first place. Having a legal advisor experienced in small business issues and commercial law is invaluable from the very beginning when starting a new business. Not only can they draft contracts, set up business structures, advise on commercial transactions and employment laws as well as apply for the correct business licenses for your operation, they are also able to ensure that every action your company takes is legally sound from the start – and that your rights are fully protected. This means if you do face a legal issue – as the majority of small businesses do within the first two years of operation – your company can deal with it efficiently and cost-effectively. 

At Sedita, Campisano & Campisano, LLC, a commercial law firm in NJ, we offer small businesses in New Jersey more than 30 years of commercial law experience and an invaluable working relationship that gives your business a solid foundation for success. For more information on our services, please visit our website at https://www.scclegal.com today.

Growing Family? A Living Trust could be just what you need.

Expanding your family is an exciting time that brings a whole new dynamic into the way you plan for your future and that of your loved one’s. When you have a Living Trust, your estate planning attorney in New Jersey can assist you in modifying your estate plan to make sure your new family member will be properly looked after.

One of the greatest benefits of a Living Trust is that it is very flexible, allowing you to change terms, amend its contents or even revoke it completely if you wish. Many Living Trusts are created as a shared trust with a spouse and making any changes to the trust will require written agreement from both parties.

Generally speaking, in the event of significant amendments to your Living Trust – such as the provisions made for a child – the best course of action is to restate the trust rather than revoking it or amending it. This is because amendments that transfer property carry a cost as well as significant paperwork and hassle, while the changes themselves may result in confusion. Restating the trust will insure the original date of the trust remains and that no assets are left out in error while the new amendments (such as who the property will go to) changes to that stated in the new trust document.

Is a Living Trust the right choice for you and your family?

While similar in some ways to a Last Will and Testament, a Living Trust offers several benefits to your estate and its benefactors. While Wills have to go through the probate process, which can be lengthy as well as costly, Living Trusts do not. This allows your assets to immediately transfer to your named trustee (often your spouse or family member) who will then have access and control over your finances and property. They also allow you to significantly reduce estate taxes or even eliminate them completely, insuring your family and loved ones are able to maximize their benefit from your estate.

Living Trusts are also ideal if you desire greater privacy and control over your estate as they bring all your assets together under one plan, allow you to change or revoke their terms easily and are never made public, unlike Wills. As trustee, you will also be able to set exact terms over when you want your beneficiaries to inherit, rather than leaving these decisions in the hands of the court.

These trusts are also very difficult to challenge and relatively easy to set up, making them an option well-suited to individuals who want to insure their assets are passed on in accordance with their specific wishes with minimum hassle.

For more information on setting up or changing a Living Trust, please contact estate planning attorneys at Sedita, Campisano & Campisano, LLC  or visit our website at https://www.scclegal.com today.

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