In part one of our interview with attorney Adam Dash, we focused on what entrepreneurs need to know about forming a business entity. Today, we’re continuing the discussion with Dash, who talks about the permits, licenses and regulations that food or beverage entrepreneurs will require when launching and expanding their businesses.
In his own sprightly fashion, Dash details the necessary paperwork for the various levels of government: local, state, and federal. FBU entrepreneurs watching the interview will find that nearly every question required a rather lengthy response because of the small, but important, points and caveats necessary to address each of the regulations.
One discussion of interest was on the common practice of small businesses choosing to incorporate in Delaware. Dash offers insight as to why this is the case, and how in some states, the plan for doing so can actually backfire.
“If the government wants to come after them [the businesses] for some particular reason, they want to know who’s actually behind the company. Some states are very difficult to find that out,” Dash explained. Places like Delaware — people like to incorporate there because Delaware is hard to find that information. However, if you were in Massachusetts, you could do that but then you’d also have to file under a foreign corporation, in which case you would have to put in all the information Massachusetts requires and you’ve just undone the whole purpose of going into Delaware.”
In addition to rules and regulations, FBU also asked Dash about the cost of forming a corporation and how much, in general, it would be to hire a small business lawyer for consultation during the initial stages of forming a company.
Our final interview segment with Dash will focus on protecting the intellectual property of your new business and contracts with employees, suppliers and contractors. Stay tuned!