2. They had not filed documents concerning the type of the company's legal structure with the state. 3. The leasing company for their office space required the business to have minimal hazard insurance, but a mentor told the team that they needed general liability insurance and that they should have some type of umbrella policy to protect the company. Their mentor further recommended that the team should talk to an insurance agent who worked in this area to determine what else the business might need. 4. They had not applied for the license for a sign at their manufacturing operation in North Carolina. (A recently passed county ordinance required each business owner to apply for a license to put a sign on its building and/or street. The restrictions on new signs were substantial.) These licenses were not particularly expensive to obtain; however, the time and effort it took to address each one were not small. The issues about how to structure the company and deal with state authorities were bigger. After investigating the cost of creating an S or C corporation, they chose an LLC as the fastest, cheapest means to bring the business into existence. However, after they filed all the paperwork, several of the firm's investors informed the team that an LLC would not work for them. Those investors wanted stock issued commiserate with the amount of money they had invested, and they wanted the company to have a formal board of directors. More importantly, they wanted the protections that a C corporation provided them. The team realized that they needed a lawyer and sought one to form a C corporation and to advise them on all licenses and regulations. Starting a new business was not as simple as they had thought. Hatchboards As James, Rob, and Clara were building the business, they felt that getting the contractors in place and setting up all the equipment and supplies would be the biggest time delay in starting their new business. Several weeks into the process, one of the team's mentors asked if the group had all licenses and insurance in place. In all of the efforts to start the business, the team had simply not taken the time to consider what legal requirements might be needed. * They were operating the business in two different states with the manufacturing in Hickory, North Carolina, and the rest of the business in Fort Lauderdale, Florida. They were stunned to find out that they were required to acquire several licenses and that insurance was a significant consideration, The team learned the following: 1. They had not obtained a local business license required for any new business in each of the cities where the business operated. 2. They had not filed documents concerning the type of the company's legal structure with the state. 3. The leasing company for their office space required the business to have minimal hazard insurance, but a mentor told the team that they needed general liability insurance and that they should have some type of umbrella policy to protect the company. Their mentor further recommended that the team should talk to an insurance agent who worked in this area to determine what else the business might need. 4. They had not applied for the license for a sign at their manufacturing operation in North Carolina. (A recently passed county ordinance required each business owner to apply for a license to put a sign on its building and/or street. The restrictions on new signs were substantial.) These licenses were not particularly expensive to obtain; however, the time and effort it took to address each one were not small. The issues about how to structure the company and deal with state authorities were bigger. After investigating the cost of creating an S or C corporation, they chose an LLC as the fastest, cheapest means to bring the business into existence. However, after they filed all the paperwork, several of the firm's investors informed the team that an LLC would not work for them. Those investors wanted stock issued commiserate with the amount of money they had invested, and they wanted the company to have a formal board of directors. More importantly, they wanted the protections that a C corporation provided them. The team realized that they needed a lawyer and sought one to form a C corporation and to advise them on all licenses and regulations. Starting a new business was not as simple as they had thought. Hatchboards As James, Rob, and Clara were building the business, they felt that getting the contractors in place and setting up all the equipment and supplies would be the biggest time delay in starting their new business. Several weeks into the process, one of the team's mentors asked if the group had all licenses and insurance in place. In all of the efforts to start the business, the team had simply not taken the time to consider what legal requirements might be needed. * They were operating the business in two different states with the manufacturing in Hickory, North Carolina, and the rest of the business in Fort Lauderdale, Florida. They were stunned to find out that they were required to acquire several licenses and that insurance was a significant consideration, The team learned the following: 1. They had not obtained a local business license required for any new business in each of the cities where the business operated