In order to start up a management consulting company there are a number of legal factors to keep in mind. First you will have to decide what form your business will take, from one of the existing legal structures; partnership, incorporated company etc. This is up to you and depends mostly on whether you are thinking of your consulting company being small or large scale.
In a consulting business your biggest risk of liability is likely to be your own professional malpractice, which applies regardless of whether you’re operating as a sole practitioner or in a corporate entity. However, clients will be more likely to trust an incorporated company or partnership. Speaking with a lawyer about your options regarding using a limited liability company or partnership structure is a good idea, and we can help you set this up with the relevant paperwork.
Other legal specifics include needing special certification for certain types of management consulting, which bolster confidence with clients and demonstrate professionalism. You will also want to consider any ethical hazards. Consult with a lawyer about any conflicts of interest that may arise with competitors or with a previous employer. Review any contracts you have signed, including non-compete agreements which may prohibit you from starting up such a business.
Once you have successfully started the management consulting company, you will also need to keep in contact with a lawyer and/or a tax accountant about the ongoing obligations your business will have in regards to taxes, employment and general organisation of the company.