Starting a business can be an overwhelming and daunting affair. There is a long list of things that you have to do before getting started not to mention all the challenges you are certain to face in the process. Ranging from issues of funding for your business, finding the right staff, the office space, needed equipment, and many other issues down the road.
Another important thing that you may struggle with are aspects of your business that may have legal aspects to it. This can refer to things like having the needed legal documents or contracts, the right licenses, operating agreements, company bylaws and more. Here are a few tips that you should know as it concerns those aspects of your business that have a legal aspect to it.
- Ensure You Have Air-tight Contracts:
Business contracts are very important for any business. Whether it is your business partner, an outside contractor or an employee, contracts should be properly drafted by a professional, preferably a commercial attorney.
Thinking that you don’t need contracts is a big mistake. There are a number of problems that may arise later such as clients that don’t pay for your product or services or contractors who fail to deliver on a product or service you paid for. With a properly drafted and air-tight signed contract, your chances of winning any legal action you might take against the defendant is likely to be successful.
- Determine Your Finance Needs:
Starting a business needs the money that you may not have right away, which is a big hurdle. Many entrepreneurs start a business from a very small amount of capital.
As you have to deal with several issues at the beginning of your venture, you should have capital. Capital can be obtained from friends and family, or by applying for a business loan.
- Fulfill Your Tax Obligations:
This is an area where you would not want to take any risk. Tax laws are complicated and people often need expert legal guidance to ensure that they are in compliance with all relevant local laws. So, make sure you hire a tax attorney who can help you in fulfilling your tax obligations.
- Seek Intellectual Property Protection:
Every small business needs intellectual property protection. Without this protection, the risk of your ideas and products to be stolen becomes higher. When you have intellectual property protection, you have a legal stand on your ideas and products if they are compromised.
- Select Business Structure:
This is also one of the most important areas of your startup. Your decision about your business structure may have major legal consequences in the future. It is advisable that you should register your startup as either a Corporation or an LLC. Although, many startups begin as a sole proprietorship, however, this is not a good idea.
The main reason is Limited Liability Company or a Corporation protects your personal assets. Moreover, these types of structures also provide your legal protection when disputes arise with customers.
- Get Business Insurance:
Insurances provide your business with financial protection. As a business owner, you would want to make sure that your business is protected against all results. The most effective way to seek such protection is through insurance. Business insurance also gives you peace of mind while you focus on building your business.
- Ask You Attorney the Necessary Questions:
An attorney can explain to you various aspects of starting your business as well as will answer your questions. There may be hundreds of things popping up in your mind about your business. Make a list of these questions, such as:
- What business structure is suitable for your small business?
- Things that you need to know about naming your business?
- How to reduce risks as an employer?
- What should be in your bylaws?
- How can you protect your intellectual property?
- What other risks involved that you should be prepared for?
- Find the Right Business Attorney:
Starting a startup is not simple. There are several legal challenges that may come in your way and thus you have to be persistent in finding the right attorney. Otherwise, you may end up facing consequences of bad legal advice. For that matter, talk to a few lawyers till you find one that you feel comfortable and confident with.
Tips to Find a Business Attorney:
In order to get the right legal assistance for your startup, here are a few tips that can reduce your efforts in finding the right lawyer:
- Seek a referral form an attorney who has helped you in personal legal matters.
- Ask your friends and family, who have experience of working with a business attorney. Also, seek their feedback about your potential attorney.
- Attending business conferences or events are also an effective way to find a business attorney.
- If there are no such events happening in your area, go through online legal directories or services.
- Or, you can find referrals with other business owners.
These tips should give you an idea about how to go navigate many potential issues that are likely to plague your startup at some point in time. It is always good to take calculated risks than starting without any advice and face the consequences in the future.