Thinking of opening your own mortgage brokerage? As an entrepreneur, you are a special breed. Not afraid to dream big and take risks, you also know that a dash of common sense is the key to the best job in the world: owning your own business.
Before turning your inspiration into reality, make sure you stay grounded by following these simple steps to launch your small business, boost your sales and limit your liability.
1. Decide on a Business Type
The type of entity you choose for your business—whether it’s a sole proprietorship, partnership, limited liability corporation, or s-corporation — determines how you file taxes, sets up legal protections, and most importantly limits your liability. Incorporating your business also records these details with the government.
2. Protect Yourself With a Business Prenup
Launching with a partner? A buy-sell agreement protects everybody from situations that could complicate ownership. If one partner wants out, gets divorced or passes away, the buy-sell agreement can protect against sticky situations when ownership shares transfer to the wrong person.
3. Map Out a Corporate Blueprint
Corporate bylaws specify the structure for your small business. Will you have a board of directors, shareholders or other company officers? Corporate bylaws get these ducks in a row and specify the rules and meeting schedule. It’s basically the blueprint of your company.