HOUSTON BUSINESS REVIEW

CYA: COVER YOUR ASSETS! Part 1
By Shahara Wright

Shahara D. Wright, Business Law Attorney, "Serving businesses from start-up through expansion". You can cantact her by: calling her at (281) 980-2040, sending her an e-mail or visiting her website. For more information concerning Shahara Wright click here

. Congratulations! You have entered into the realm of entrepreneurship. By definition an entrepreneur is a person who organizes, operates, and assumes the risk for business ventures. Assuming the risk is of course one the main factors of owning your own business. Some risks you will be aware of, and some you will not. The risk of loosing the money that you have invested into the business, the risk of quitting your job to pursue the venture full time, and the risk of sweat equity you have poured into the business, are all risk that you are aware of, at least on some level. But, what about the risks that you are not aware of? The things that hurt you and your business because you have not put the proper protections in place to ensure that you and your business are protected?

Starting your business off by investigating the requirements of operation is one of the first things any business owner should do. Several businesses require licensing and certification. Check with business associations or trade associations for the type of business you are seeking to start to find out if any such requirements exist for your business. For example, if you are looking to open a restaurant, you need to you need to find the different licenses needed for that industry. The Texas Restaurant Association is an excellent choice to get the support you need on training and lists of licenses needed. If you are opening a grocery store and intend to sell seafood, you must acquire a license from the Texas Parks and Wildlife Department, and could incur a criminal charge if you are found operating without a license. If you are looking into entering the lending business, doing things such as “second chance” financing, or mortgage loans, make sure you check the federal and state requirements to understand the regulations regarding that business.

Failing to obtain and renew the proper licenses for your business can doom you from the start. Many of these requirements come with stiff monetary penalties and sometimes criminal charges for failure to comply. Generally, these types of liabilities are not negotiable and ignorance of the law is no defense. In addition, your business could be shut down or prevented from operating for violating a state or federal licensing requirement.

For further information regarding licensing contact the City of Houston One Stop Business Shop and ask for the “getting started package.” This package will have a lot of useful information that will assist you in identifying the proper licensing agency for your particular business.

*Nothing in this article is intended as legal advice and you should consult an attorney before making any decisions.