802-257-2221

Start Your Business the Right Way

Start Your Business the Right Way

Make a Plan

Network – Consult with friends, family, and others who own businesses or operate in your field. Build your idea with the benefit of the knowledge and the experience of others.

Plan – Although this may be a labor intensive step, it will allow you to make some of your mistakes on paper before committing. We strongly recommend making a formal Business Plan to flush out the details of your business, which should include:

  • Business Purpose.
  • Services Provided.
  • Marketing Plan.
  • Management Structure.
  • Financial Requirements.
    • Start Up Projections.
    • Ongoing Financial Projections.

Choose the Right Form for Your Business

(See chart below for greater detail)

  • Sole proprietorship – If you are the only owner of your business and just start up without filing anything with the Secretary of State, this would be the simplest form of ownership.
  • General Partnership – If you own the business with others, or share profits, but do not file with the Secretary of State, this is the simplest form of ownership.
  • Limited Liability Company (LLC) – Shields the owners, called members, from personal liability for the debts of the business. This requires filing with the Secretary of State.
  • Corporation – Assumes a traditional corporate structure to simplify transactions. Owners, called shareholders) are shielded from personal liability from the business’ debts.

Funding Your Business

Borrowing – You can seek a traditional loan from an individual, bank, or credit union. This typically requires some collateral, a down payment, and monthly payments. The cost of this method is in interest.

Equity – You can also capitalize by partnering with others who are willing to make capital contributions to the business. The details of this varies depending on your business form:

  • General Partnership – Partner with the contributor by agreeing to share profits and control of the business. Under these circumstances it is best to have a partnership agreement.
  • LLC – Make the contributor a member of the LLC, which gives him or her a share of profits and control in exchange for the capital contribution. You will need to have an operating agreement.
  • Corporation – Selling stock in the corporation to shareholders.

Crowd Funding – A new popular form of capitalization, where the owner promises products, services, and/or recognition to anyone in a large population in exchange for usually smaller sums of money. Kickstarter, Indiegogo, Rockethub, and GoFundMe are some examples of popular crowdfunding websites.

Comparing Basic Corporate Forms

(Development Insert table from live site here)

Helpful Links

Office Location

Our Brattleboro Offices
42 Park Place
Brattleboro, Vermont 05301
Phone: 802-257-2221
Cell: 802-380-2335
Email: [email protected]