I spoke with a start up business today that was asking about incorporation and drafting a basic business contract for her customers. Many business owners delay incorporating because they feel that cash flow and capital will increase after the business has been around for awhile. I also started with this same rational before I incorporated my business. From a practical standpoint, I understand the logic. On the other hand, the best time to incorporate your business is from the beginning. The reason is because you are likely the best capitalized at this point. Furthermore, many start up entrepreneurs fail to understand the risks of entrepreneurship. I know that I was one of those entrepreneurs that had a optimistic view, but when loses begin to add up, incorporation is a big concern. The benefit of incorporating a business is the ability to leave the expenses and debt if your business enterprise does not make it.
The second point to my blog today is a simple basic business contract should not costs a ton of money at an attorney's office. I believe that you can find a good attorney at a reasonable price to draft a simple to complex contract. Some entrepreneurs overpay an attorney and an attorney charging $275 per hour does not mean that that attorney is better than a more reasonably priced attorney.
Sean Robertson is an entrepreneur and business attorney in downtown Chicago and Naperville, Illinois. We can be reached at (312)-854-7102 and we assist business owners with incorporations, drafting basic to complex business agreements, and purchase and sale of a business.