The First 90 Days: A Legal Checklist for New Business Owners
Legal Checklist for the First 90 Days in Business
Starting a business is exciting. Your ideas are finally becoming real, but are you truly set up for success? The first three months are critical. Getting the basics right early gives you clarity, helps with decision-making, and can prevent legal headaches down the line. Whether you’re launching a small agency, turning a creative idea into a business, or growing an existing project, the legal choices you make now can have a big impact later.
This checklist covers some important legal steps to consider in your first 90 days. It’s not exhaustive and shouldn’t replace legal advice, but it’s a solid starting point.
1. Select and Form Your Business Structure
The type of business entity you choose can impact many different things; taxes, personal liability, how ownership is divided, and even where your company can go in the future all depend on it. Many founders choose among an LLC, S-Corp, or C-Corp, depending on funding goals, ownership expectations, and industry norms.
A formation attorney, like Sagsharma, can help ensure everything is done correctly. This includes preparing foundational documents such as operating agreements or bylaws, issuing membership interests or shares, and clearly documenting who owns what.
Key steps:
Choose the right entity
File formation documents
Draft governing agreements
Obtain an EIN
You can apply for an Employer Identification Number directly through the IRS application page. Before filing formation documents, it’s often helpful to review the U.S. Small Business Administration business formation guide just to get the basics down.
2. Establish Corporate Governance and Operations
Even small and early-stage companies benefit from an internal structure. During the first 90 days, focus on formalizing decision-making and clarifying roles.
Things to do:
Create internal operating policies
Keep records of key decisions
Draft board or leadership resolutions, if needed
Document equity grants or ownership interests
Good governance builds trust with investors, your team, and other stakeholders. It also keeps your business aligned with your vision as it grows
3. Protect Intellectual Property Early
Your brand, creative work, and unique ideas are valuable from day one. Waiting too long to secure IP protection can lead to disputes or copycats.
Actions to consider:
Search for trademarks for your name and logo
File federal trademark applications if needed
Clarify ownership of creative and technical assets
Use NDAs and IP agreements with contractors or vendors
Protecting your intellectual property early helps safeguard your brand and future revenue.
4. Build a Strong Contract Foundation
Clear contracts are essential. Generic templates often miss important terms or don’t fit your industry. Tailored agreements reduce friction and help your business run smoothly.
Start with:
Client service agreements
Vendor or supplier agreements
Employment and contractor agreements
Website terms and privacy policies
Contract review process
Knowing exactly what obligations exist for every agreement prevents misunderstandings and protects your business.
5. Understand Employment and Compliance Requirements
Even if you’re not hiring yet, it’s smart to plan ahead. Consider:
How to classify contractors vs. employees
Compliance with wage and labor laws
Workplace policies as your team grows
Maintaining necessary licenses and permits
Proactive planning keeps you aligned with regulations and protects your business as it scales.
6. Create a Financial and Legal Maintenance Routine
Don’t wait until problems arise. Establish systems that support long-term growth.
Open a dedicated business bank account
Establish bookkeeping and accounting systems
Maintain corporate records and resolutions
Set quarterly legal and financial check-ins
Early discipline creates confidence, transparency, and readiness for growth, investment, or acquisition opportunities.
Moving Forward with Clarity
Your first 90 days are not about perfection. They are about alignment, clarity, and protecting what you are building. Legal support during this stage is not simply about documents. It is about strategy, foresight, and making informed decisions that match your vision.
If your business would benefit from tailored guidance, thoughtful legal structure, or support navigating these early decisions, schedule a consultation with Sagsharma today.
The information provided herein is for general informational purposes only and is not legal advice. Reading this blog does not create an attorney-client relationship between you and Sagsharma LLC.
