The How of Business - How to start, run, grow and exit a small business. 584 – Essential Legal Tips with Wesley Henderson
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Oct 13, 2025 Wesley Henderson, a seasoned business attorney and entrepreneur behind Drafted Legal, offers invaluable insights for small business owners. He explains when to form an LLC versus staying a sole proprietor and clarifies the distinctions between LLCs, corporations, and S-Corp elections. Wesley highlights the importance of clear contracts to prevent scope creep and costly disputes, while also discussing how to protect intellectual property and avoid common legal pitfalls. His expertise provides listeners with essential tools to confidently navigate the legal landscape of entrepreneurship.
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Form An LLC Early
- Form an LLC early instead of operating as a sole proprietor to separate personal and business assets.
- Use insurance too, but understand it covers different risks and can deny claims.
Mold Claim Denied By Insurer
- Wesley told of a mold remediation client whose insurer denied coverage on a mold claim.
- The story highlights that insurance can unexpectedly refuse to pay despite having a policy.
LLC First, S‑Corp Later
- Default to an LLC because it is flexible and simpler for most small businesses compared to a corporation.
- Treat S‑Corp as a tax election you can add later, not an entity choice that must block starting.