In case you were curious about who I am, here’s an interview I gave at KikScore.com….you can also check it out here: Gregg Hand Interview.
Starting Up Your Start-Up
March 9, 2011I got a call the other day from a friend of mine. Claimed he’d had it working for “the man,” and was ready to strike out on his own.
“What’s that take these days?” he asked.
“Aside from cash and a great idea?”
“Yes, smart ass. For the time being, assume I’ve got both of those,” he responded, slightly miffed.
“Well, you know, when you ‘assume,’ you –”
“Listen, Perry Mason. Just give me the down and dirty on the legal steps to starting my own business.”
“Ah….that I can do. In general, there are six simple steps for an entrepreneur, like….ahem….yourself, to starting a small business. First, you need a name for your business enterprise.”
“A name. That’s easy.”
“Well, it may be easy to come up with a name, but you’ll need to check to see if that name is available. In general, if someone else is already using that name — sometimes called a trademark or trade name — or a similar name, and using that name for the small business would create a likelihood of confusion, you won’t be able to use the fabulous name you’ve come up with.”
A little silence on the line. My friend was thinking. ”What’s step two?”
“The next step is choosing and setting up the appropriate form of entity for the small business. Deciding whether you want to be a sole proprietorship, a partnership, a limited liability or some form of corporation and then taking the proper steps to form that entity so that its recognized by the government.”
“Well — which one is right?” my friend asked.
“We’ll get to that later. Can I finish my steps first? Third step — get yourself an EIN.”
“EIN? Please explain.”
“An EIN is an employer identification number — kind of like the business’s own Social Security number.”
“Do I need that?”
“Yes. You do. Or will. The IRS, business license bureaus, tax departments and sometimes the offices of the secretary of state require an identifying number for your business. While you can use your Social Security number, that can raise identity theft concerns. An EIN is just a good way to distance yourself from your business. Surprisingly, the IRS makes it quick and easy to obtain and EIN — the online application process only takes a few minutes and is free.”
“Okay. Step four?”
“State business license. Depending on the state in which you form your entity, you may be required to obtain a business license to operate in the state. That’s usually done through the state’s corporations or business agency or with the secretary of state. On a related note, step five is a sales tax license.”
“I need a license for that, too?” My friend sounded weary.
“Well, if you’re planning on selling stuff, other than real estate or your services — I’m talking products, goods, things here — chances are good that you’ll need a license to charge sales tax. Once you’ve figured out what you’re going to be doing, getting these licenses — most of which can be done online these days — is relatively painless.”
“And the last step?”
“The last step is sort of a contingent step. If your business is going to have employees, than there a a number of other things you have to do — little steps.”
“Like?”
“Oh, things like reporting new hires to the government, or posting workplace notices, or maintaining workers’ compensation insurance, or creating an employee handbook, or complying with anti-discrimination laws. Little things like that. But if there are no employees — yet — we don’t have to worry about those things right now.”
Silence. A bubble had burst. Rehabilitation needed.
“Look,” I said. ”This may sound overwhelming, but it’s really not. You just need some guidance. The important thing to remember is that you can change what you are doing as your business grows and develops. Just get started. These start-up issues should not keep your ideas and business from getting off the ground.”
“Okay.” Renewed vigor in the voice. Deep breath. He was back. ”Can we run through these steps in a little more detail so that I’m sure I understand them and know what they entail?”
“Absolutely. Let’s take it from the top.”
And with that, we started in with the first step….
Stay tuned.
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Legal, Regulations, Small Business, Start Up | Tagged: Business, Business license, Employer Identification Number, Employment, Internal Revenue Service, Perry Mason, Social Security number, Sole proprietorship | 
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Posted by Gregg
Happy New Year and Welcome!
January 1, 2011
Finally. A brand new year, a fresh start. Welcome to my blog. I’ve only had it ready to go for over a year now. No more delaying — we are blogging here!
A little background before we get started on this journey. A little over a year ago, I started my own law practice. After 22 years of the BigLaw experience, I was ready to move on and really practice law — help out real people and real companies with their real problems. So, I did all the things the social media things I was told I had to do — got on Facebook, got on Twitter, got on LinkedIn, oh — and got a blog. I gave the name some thought (although in hindsight, probably not enough), and voila! ”Briefs in a Bunch!” Hilarious, I thought. You know, something we always thought we’d like to tell the senior lawyers at the BigLaw firms when they were anxiously awaiting some carefully prepared legal memorandum or court pleading — “Don’t get your briefs in a bunch,” or “Don’t get your panties in a ….” — well, you get the point. Don’t worry. Breathe deep. Go to your happy place. And soon your worries will be gone. And sure enough — there were.
So, “Briefs in a Bunch.” Oh, the cleverness of me. But when it came time to actually begin posting under that wonderful title, I hit writer’s block. How was “Briefs in a Bunch” supposed to tie in to what my law practice was all about? Some “ha-ha, funny” posts about lawyers doing stupid things? That’s been done (and quite well, I might add). And how does that jive with my practice anyway? What did I want to write about? Who was my audience? Could I really come up with something new every week? Too many questions, too much uncertainty at a time when my practice was just starting out. So, “Briefs in a Bunch” just sat there, a great blog name with no posts, gathering dust in a lonely corner of the Web, while I focused on building my practice.
And as I began helping my clients, it slowly came to me. I was counseling them on how to avoid future legal problems or giving them advice on what to do when faced with a particular legal issue. They rightfully were nervous and anxious, because they were being exposed to situations that were foreign and unknown to them. And there I was educating them, strategizing with them, counseling them, advising them — subconsciously telling them not to get their briefs in a bunch. I was there with my expertise to help them navigate through this legal thicket so that they instead could focus on their area of expertise. Yes, it was an “aha!” moment.
Well, you probably can figure out now where we are headed. ”Briefs in a Bunch” will focus on legal issues and questions that small businesses may confront on a regular basis. I’ll try to offer advice and suggestions on how best to either avoid these sticky legal situations in the first place, or how to clean up and move on after you have stepped in it. And, we’ll do it without completely freaking out or getting your….well, you should know by now. That may seem like a pretty wide ranging scope for a blog, but hopefully there will be a little something for everyone to pick up from these posts.
So, welcome, and be sure to buckle up (hey…sometimes the road can be a little bumpy) — but don’t worry. You’re in good hands. Oops…sorry about that.
2 Comments | Introduction | Tagged: advice, BigLaw, small business | Permalink
Posted by Gregg
