As my time in graduate school comes to an end, I find myself needing to make preparations to dive back into “the real world” for the second time around. If you haven’t read my bio (shame on you!), after I receiving my Bachelor of Science in Biology from Villanova University, I spent about 12 years working, traveling, moving from place to place, trying to “find myself” and my true passions. Through lots of trial and error, I realized I wanted to do a 180 and pursue a career in the entertainment industry. Because my undergraduate studies were in a completely different field, I knew that going back to school was the way to go. After serious consideration, I chose Full Sail University’s Entertainment Business Master of Science program, in the hopes that this degree will leave me with more than a $100,000 sheet of paper with my name on it (although I look forward to getting that too!).
One of the facets I absolutely love best about my degree program, is how the curriculum and assignments are focused entirely on real-life and real-world practical application, specially tailored to my future business endeavors. As I have written in earlier posts, networking with professionals in the industry can be incredibly useful, as contacts can be called upon for advice and favors in order to help further achieve one’s goals.
In my last post, I discussed the importance of registering intellectual property, by filing for trademarks and copyrights, for example, in order to protect businesses and their owners from legal liability and so that no one else can use the registered ideas for their own personal gain. I recently reached out to an entertainment lawyer named Ken Carraway, whose practice focuses on Business & Arts Law, in the hopes of gaining some professional and legal insight as to what he feels is most important when starting a small business. Carraway Law represents businesses throughout the life cycle – from entrepreneurs with start-up issues, to seasoned business owners in need of succession planning. The law office focuses in business formation, contract and licensing matters, and consultation services for a sustainable business model, with a strong concentration on intellectual property issues.
Kenneth E. Carraway is a graduate of Villanova University Law School, and being that I received my undergraduate degree from Villanova and the fact that his areas of practice fit seamlessly with my business plan, I asked if he could answer a few questions for me and to share some of his opinions as to how I, or anyone in my position, should go about turning a business plan into a reality. I decided to share with you some of our conversation.
I came to Ken as a prospective client, hypothetically of course, seeking legal counsel about how I should go about starting a business, and the steps necessary to get this business off of the ground. He wanted to clarify that all my questions were of the “it depends” variety (meaning that the answer would vary for each question under differing facts), so it was difficult for him to arrive at answers that were very specific. Therefore, he generalized his responses as best has he could. In addition, he also added this DISCLAIMER: These answers are for informational purposes only for the purposes of a student assignment. It is not intended as specific legal advice regarding your questions. This does not establish an attorney client relationship.
So, here we go:
Is legal counsel recommended or required?
While it is not required that someone forming a business seek legal, I would highly recommend that they do so. Seeking legal counsel may help someone avoid some of the pitfalls that they may face in starting up their business. It’s different for everyone. Elementary questions one should ask when starting a business come to mind: Is this a sole proprietorship or a partnership? Do I need a business agreement? What kind of business entity is best for my business? Are there any regulatory or insurance requirements of which I should be aware? How will I be taxed? How do I protect my business name?
All of these questions, and many others, can be answered by engaging the services of an attorney.
How much money would such representation cost?
This varies, and may be dependent on the complexity of the business one is forming. One may find some attorneys that will charge an hourly rate for these services, while others may do it for a flat fee, or a mixture of both.
How much money is required to file all necessary paperwork and registrations?
Again this is dependent on the type of business and choice of entity.
How much time does completing all of these steps take?
For a small business without any regulatory issues, the process of setting up a business entity can be done fairly quickly. While a more complex corporate setup or non-profit may take several weeks or months.
Can a business start functioning before all of the necessary filings are
completed?
Generally, the short answer to this question is yes. But again it depends on the individual business, and a consultation with an attorney is a must if someone is considering this option.
As an attorney, do you offer your opinion and suggestions so as to help
entrepreneurs with their business ventures, or do you simply act on behalf of the client?
Both. An attorney will assist someone forming a business in navigating the various legal issues and may lend some non-legal advice in the form of counsel as well. Strictly speaking, a lawyer is his or her client’s advocate and will act on behalf of the client, but they obviously cannot be complicit in illegal or unethical acts and should advise their client accordingly.
Anything essential to launch a business?
A pulse. But to be successful? Tenacity.
As you can see, there definitely doesn’t seem to be any straight-forward, easy-to-follow instructions that anyone and everyone can follow in order to successfully launch a business. I am realizing more and more that there are many individual facets that need to be addressed, many of which I would have never even been aware, hadn’t it been for my professors or for talking to professionals in the field such as Ken Carraway. As much as I have learned thus far in Entertainment Business, I realize that for everything I do know, there is much more I do not. Therefore, seeking the advice of legal counsel and other seasoned professionals will only strengthen my chances of successfully launching and running a business of my own.
From Mr. Carraway’s responses, I have learned that you must be meticulous in completing all requirements, and must make sure to think every step through. A business cannot be up and running in a day. Therefore, patience is key. It is much smarter to take your time and to make sure that every minor detail has been addressed, versus rushing to open a business and then suffering from your carelessness down the line. Although consulting an attorney will cost money, most or all of which many individuals starting a business may not have readily available, in my opinion, legal representation is well worth the investment. You have someone on your side, who is much more knowledgeable and experienced than you, acting to protect you and your business from any legal ramifications. Pride must be swallowed. Ask for help. Naively thinking you know what you’re doing will just lead you blindly down an un-navigated path.
Ken Carraway’s responses made me realize how overwhelming and intimidating starting a business can be. However, he has inspired me in more ways than one. Mr. Carraway says that although anyone may be able to start a business, in order to be successful, you must be tenacious. In my opinion, the ultimate way to be tenacious is to fight for something you love. If you are gutsy enough to take chances and to try to make it in business on your own, you must have total confidence in yourself and in your business plan.
Although this interview did not establish an attorney client relationship between Ken Carraway and me, Ken’s openness and willingness to help me has made me respect him as a professional and to value his opinion. Especially in business relationships, trust is key. If you are fortunate enough to come across a genuine individual, latch on. As much as I’d prefer to continue seeking advice for free, my time in “the real world” is inevitable. Hopefully this interview can serve as the foundation to a budding professional relationship, as I admire and respect Ken Carraway, and would be privileged to have my business represented by his firm.
Kenneth E. Carraway
Carraway Law
1379 Dilworthtown Crossing, #115
West Chester, PA 19382
Phone: 610-572-2821
Website: www.kencarraway.com
Email: ken@kencarraway.com
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