Whether by choice or necessity, a lot of Richmonders have left large organizations over the past year or two to start their own businesses. Maybe they are moving on to freelancing, consulting in the industry they know, or starting a new and different business from the ground up.

Much of what’s needed to make payroll and keep the lights on is different from one industry to the next. But there are some recommended steps (apart from the obvious one of “quickly get some customers”) for pretty much everyone leaving a full-time job to start something new.

1. Form a Company
A limited liability company, an S-Corp, or a C-Corp, all are options when you form a business entity, and all will create a separate legal entity other than yourself. The red tape and expense is not as bad as you might think, and forming and maintaining a separate business entity provides a layer of insulation from personal liability.

2. Think Hard About Branding
As you start your new company, consider whether the first name that comes to mind is necessarily going to be the best one over time. In order to be valuable, your trademark does not need to be off the wall, but it does need to be distinct. Does “Jones Consulting” really evoke what you want in the minds of your potential clients? And if there is already a company out there using something close to the name you are thinking of, keep brainstorming. Investment in building a good name for yourself could be wasted if that name is already in use by someone else.

3. Exit With Care
Over time, your former colleagues can be your biggest referral sources, collaborators, subcontractors, or even become your colleagues again. A two-week notice is standard to prevent leaving everyone behind you in a lurch. If you have a non-compete, make sure you understand it’s likely enforceability, where its edges are, and the risks of walking outside of those edges.

4. Get a Lawyer and An Accountant
Even after your business entity is formed, business license procured, and new tax ID is in hand for your business, you are going to have legal and tax questions. You may even find yourself receiving a tax resolution marketing letter from accountants that are trying to sell you their services. You should know who your lawyer and accountant are ahead of time, in case these questions come with a short fuse attached. Ask around, call a few of these professionals, and find out whether they have clients in your industry. An accountant, like those at the Future Firm, will be a good resource for setting up your books and keeping them straight. Working with a lawyer means that they can help you get your client contracts or other agreements in place swiftly and legally. Once you have chosen which accounting services company you want to work with, set up a meeting to get to know the staff you’ll be working with. The same applies to your lawyer. You’ll need a good relationship with both of them.

For those about to walk, we salute you. Look both ways before crossing the street.