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4 Factors That Affect How Long It Takes To Set up a Business
Starting a business is an exciting venture and you are probably eager to begin. You may wonder how long it will take before you can officially open to the public. Starting up a new business is often a matter of weeks, sometimes a matter of months. As explained by our friends at Eric Siegel Law, your individual circumstances determine how long it will take to get your business officially off the ground.
1. Where the Business Is Located
Every state has its own rules that govern business operations and startups. Depending on where you live, the laws of your state may require more steps to register and license your business. If you have more requirements to meet, starting up your business may take longer than it would in a state where there are fewer requirements.
2. What Kind of Business You Want To Start
The structure that you choose for your business can influence how long it takes to start. The more complex your business structure, the longer startup can take. A sole proprietorship is the simplest business structure because there is no legal distinction between the business and the owner. There is very little, if any, paperwork required to start a sole proprietorship, so the time required to start it up is much less. A corporation is a more complex business structure that makes the company a separate legal entity. This requires a lot more paperwork to set up, and therefore the time frame can be a lot longer.
3. Where You Plan To Operate
If you plan to buy or lease commercial space in which to operate a business, it can take a long time to find a place. Even if you have the property available already, it will probably take time to set up the space.
You may think that operating your business out of your home takes less time to set up, and in some cases that may be true. However, you must check the zoning in your area to make sure that you are in compliance, and that can take some time.
4. How Many People Are Involved
If you are running a business by yourself and not hiring employees, setting up your business should take less time. However, if you plan to hire employees or share the business among multiple owners, there is more paperwork required to be in compliance, and therefore, setup can take more time.
It is difficult to keep track of all the requirements you need to meet when starting a business. Consider contacting a business succession planning lawyer for a consultation regarding a business succession or to assist with setting up your business.