How do I set up a sole proprietorship?
Be sure to check with your local authority (i.e. your township, borough, or city) and the Nevada Secretary of State to determine what license you need to operate your business. Setting up a sole proprietorship is relatively simple. However, even a business operated as a sole proprietorship needs good legal advice as there are always business licensing, asset protection, liability, employee, and estate planning issues involved.
Why would my business need a buy-sell agreement?
Buy-sell agreements and good estate planning are needed so that your business can continue if you or another partner/member becomes incapacitated, dies, or just wants to move on. For example, your business purchases life insurance on your life which is used to pay your family for your share of the business when you die and the business continues.
How can I protect my personal assets from a business failure?
A sole proprietorship and a general partnership offer no asset protection so good insurance is needed. Multi-member limited liability companies, limited liability partnerships and corporations offer a higher level of asset protection for your personal assets. There is some concern now that single member limited liability corporations no longer offer asset protection. Asset protection is definitely a conversation you should have with your Nevada business attorney. It is one of the main factors in determining which business entity is right for your business.
Do my partner and I need a partnership agreement?
Legally, no partnership agreement is needed to create a partnership. All that is needed is your joint intention to create the partnership. However, as a practical matter, it is in your best interest to have a written partnership agreement regarding all aspects of your business such as responsibilities, costs, profits, management, and benefits. Your bank or financial institution will likely require a partnership agreement to open a checking account or provide a loan.
How do I register my business with Nevada’s Secretary of State?
Nevada’s Secretary of State has a website with information on setting up and running Nevada businesses: http://nvsos.gov/