
Keryl Burgess Douglas
The Houston SunThe recent drop in the unemployment rate, while small, is tremendously encouraging to many. However, these critical times still call for critical measures to decrease, or ideally eradicate, unemployment. As usual, the financial dearth is hardest felt in the Black community; which is why Black leaders and civil rights organizations around the nation have increased the urgency of their appeal that President Obama take specific and immediate steps to reverse the skyrocketing unemployment among Blacks.
Many ideas worthy of serious consideration have been presented to Obama. One of the most exciting is that of providing the necessary avenues for increased creation of new Black-owned businesses, access to capital for existing businesses, and removal of systemic, discriminatory barriers to economic success of black-owned businesses.
Entreprenuership can not only remove the new business owner from the unemployment rolls, but also create an exponentially positive impact on unemployment by the hiring of many others by this new business. Many individuals forced into unemployment by massive layoffs and hiring freezes have already found their economic niche in business-ownership. Many new businesses are run from home, minimizing overhead costs.
For those who will also soon embark on their own entrepreneurial journey, there are some legal aspects to creating, organizing and running your own business. Many individuals successfully run their business without legal counsel. However, in many instances, it is best that legal aspects of business ownership be researched and incorporated into the business development plan to achieve sustaining success.
My belief is that a fee paid to an attorney will more than pay for itself through the returns of a properly established business, as well as through the avoidance of legal or tax pitfalls, penalties, etc. If you cannot afford to pay an attorney, a wealth of information is available on the internet or can be attained through attending various business seminars.
A major consideration is the proper structure for your business; whether to form as sole-proprietorship, partnership (general, limited, etc.), corporation, (S- or C-) or joint venture. If incorporating, consider which state provides the greatest advantages to suit your business needs. While Delaware is the most popular state of choice, your business model may require differently.
The tax treatments, legal liability or exposure, licensing requirements, etc., differ based on the answers to such initial basic questions. Many individuals may not really know all of the important questions to ask or consider. This is why I recommend consulting a business attorney to establish a new business or to properly formalize an existing one. Either way, “the new business” may be the best and most immediate “new job” for many seeking economic stability in these trying times. If this is you, we certainly wish you the greatest of success in your endeavors.
We welcome your comments and questions. Please e-mail or write us at info@houstonsun.com. This information is provided for general purposes only and should not be relied on as legal advice nor considered a solicitation to provide legal advice. For legal advice, see the lawyer of your choice.
Keryl Burgess Douglas is a proud Thurgood Marshall School of Law Graduate, finishing Summa cum laude as #5 out of her class of 202. She has one son, James Matthew II, and practices law in Houston , Texas .