starting a business 1

[mielke]

what are the rules/legal issues in starting a company after you worked for another company in the same field and providing same service?

 

[casseopeia]

Generally no special rules, other than your standard administrative stuff like getting a business license and having enough capital to get up and running. I'd mention stuff you would need for a business loan, but those are pretty scarce right now.

It also depends if you organize as a sole practitioner, LLC or a subchapter S corporation. But those are things you should discuss with an attorney/accountant and decide what is best for you. If you are asking about marketing to the same Client base as the employer, I can tell you in the US that even if you have signed a non-compete agreement, and even if the non-compete agreement meets all the rules about limiting range, time frame, etc., that in court, those non-competes are struck down except in the rarest of cases. Grab the Clients you can. But bear in mind that many corporations (and smaller companies owned by ex-spouses) rely on fear and financial intimidation to protect their interests. Best bet is to stay under the radar so that you are never forced to defend yourself.


"If you are going to walk on thin ice, you might as well dance!"

 

[casseopeia]

Here's a link for a pretty good place to start reading up in starting a business.

http://www.nolo.com/legal-encyclopedia/llc-corporations-partnerships/

"If you are going to walk on thin ice, you might as well dance!"

 

[patprimmer]

I believe the rules in Somalia depend largely on your favour with the local war lord.

Regards
Pat
See FAQ731-376 for tips on use of eng-tips by professional engineers &

http://eng-tips.com/market.cfm

for site rules

 

[msquared48]

Yeah... Texas is real close to Somalia Pat.

Mike McCann
MMC Engineering
Motto: KISS
Motivation: Don't ask

 

[patprimmer]

Mike

How do you know he is from Texas. He has not declared a location.

Regards
Pat
See FAQ731-376 for tips on use of eng-tips by professional engineers &

http://eng-tips.com/market.cfm

for site rules

 

[msquared48]

I 'm psychic... I think.

Mike McCann
MMC Engineering
Motto: KISS
Motivation: Don't ask

 

[casseopeia]

If been casually contemplating starting my own business and one of the things that keeps cropping up is incorporating in a State where you neither reside nor practice. You will most likely have to pay additional fees in the State where you are located if you are a corporation in a 'State Other than this One' requirement. I believe Delaware also requires that you have a local agent or representative who for a few hundred dollars every year will keep your filings up to date. i don't know about Nevada, but it's important to know all the fees, and not just where you will save money.

Also more important than ever, research your business name to see if it is available in your State. Also do basic searches on business related networking sites such as LinkedIn. Even if you are just using your name. You'd be surprised at the number of people who can have the exact same name.

And finally, have a budget before you do anything so that your startup costs do not get out of control.



"If you are going to walk on thin ice, you might as well dance!"

 

[brandoncdg]

I know one of the past companies I worked for wanted to stop doing engineering and they are passing on all of their work my way. It sounds odd, but I am sure this is not that rare to happen.

Civil Development Group, LLC
Los Angeles Civil Engineering specializing in Hillside Grading

http://www.civildevelopmentgroup.com

http://www.civildevelopmentgroup.com/blog

 

[mayanees]

Don't forget about Professional Liability Insurance.
I used to practice as a two-man engineering shop with a hefty policy as required by one of my clients, for $3,000/year. In the 10+ years that it was active, I never had any claims. And when I stopped the business, the insurance company wanted something like 20 or 30% of that per year for any future claims. Racket. The reason I had to have it was that some of the clients required the certificate of Insurance, otherwise I wouldn't have spent the money on it.
John M

 

[ornerynorsk]

In the states, a PLLC in your home state can be favourable to a c-corp in Delaware(or wherever). Better for the taxes usually. I'm an LLC, actually, not in engineering services but in an unrelated side business in addition to the day job, and wouldn't have done it any other way. Certain states have reciprocity considerations for taxes, both corporate and personal earnings, while some do not.