Starting a business in Oklahoma is a multi-step process, which is why there are many aspects of startup legal planning that could easily slip through the cracks. That is why it is strongly recommended that new business owners consult with a business formation attorney in Oklahoma before moving forward with forming a new business. So, keep reading to find out what legal steps you need to take when starting a business so that you don’t run into issues later on.

Choosing the Right Business Structure

A very important business formation step that shouldn’t be taken lightly is choosing the right business structure. Generally, you have the option of establishing an LLC, corporation, or sole proprietorship. This is essential as the business structure will determine things like liability, management, and taxation.

A business formation lawyer can help you better understand what each business structure means, and its advantages and disadvantages.

Creating Foundational Business Documents

A very common business formation mistake new business owners make is not having the right foundational business documents in place from the start. Many of these documents are a legal requirement in Oklahoma and also help to better protect your business from any issues that could come up later on.

Here are some foundational business documents every startup should have in place:

• Operating agreements for LLCs
• Bylaws for corporations
• Partnership agreement for multi-owner businesses

Also, you shouldn’t rely on generic templates when creating these foundational documents, as they may not fit the specific needs of your startup. Instead, you should work with a small business attorney in Enid. An attorney will have extensive experience in this area and can help you create customized and legally binding documents.

Establishing Ownership and Management Roles

For startups with more than one owner, it’s crucial that you establish ownership and management roles from the beginning. This includes clarifying the percentages of each owner, defining their management authority, and establishing voting rights and decision-making processes.

Defining these aspects of the business early on in writing will help to avoid any confusion or conflict in the future.

Separating Personal and Business Finances

It is very common for startup founders to overlap their personal lives with various aspects of the business, including finances. However, this can lead to a variety of issues, especially if there are multiple owners involved or the business begins to grow.

To avoid running into these problems, you need to open a dedicated business bank account and establish a clear distinction between personal and business finances. You also need to establish liability protection so that you are not personally liable for business finances.

Get the Help of an Experienced Business Lawyer in Oklahoma

There are many legal considerations for startups that help to better establish and protect your business so that you don’t run into issues later on. With this entrepreneur checklist, you can keep track of the business formation steps you need to take so that nothing important is overlooked.

At Outhier & Caruthers, PLLC, our business formation attorneys in Oklahoma are here to help new business owners as they navigate the legal business requirements in OK. Contact us today at 580-234-6600 to discuss your situation with an attorney.