Legal Considerations for Launching a Business
Provided by HG.org
When getting started on a new business, the owner must consider various legal issues, and these considerations are part of permitting him or her in creating a success from the beginning. Launching a strategy through assistance with a lawyer and other professionals may create the achievement.
Some legal matters that the new potential business owner should consider are items that deal with due diligence. The market, the community, the location, the property and any other persons that may have an involvement such as a landlord or local officials are all a part of launching a new business. Each project or venture requires research, time and energy along with the money it takes to create or launch a commercial enterprise. For the owner, this includes employees, products, services and numerous items that need attention. A business lawyer should become involved in these matters early on to assist with the business from the start.
The legal concerns about starting a business begin with the name. This piece of information is vital in preparations for launching the product, services and with acquiring new clients. The name could also become the brand if it is trademarked. Then, it is all about recognition with the public. Everything the owner does with the company becomes important to the consumer. The projects, ventures and how the community reacts to the business are what launch it into the future or halt any progress. Products and services may also connect to intellectual property and a trademark. The owner should ensure a business lawyer has been hired to protect the company interests from before the doors open.
The Structure and Licenses
The type of business structure used is almost as important as the name. If the owner feels he or she wants to create and manage a sole proprietorship, he or she needs to ensure the paperwork is filled out for this specifically. If the limited liability company is a better fit, it should be created as such. If partners are already available, the primary owner may use an LLC, a partnership or a corporation in most situations. Each has its own benefits and drawbacks. Tax purposes are important reasons for picking one over another. Liability to the personal assets is another consideration that requires research and thinking.
Business licenses are crucial for a variety of reasons. However, some of these are directly connected to intellectual property. Without a license, some IP cannot be used without violating the protections in place by the owner. However, other licenses are often necessary locally within the town, city, state and some for federal means. Trademarks specifically require state or federal registration. Additionally, if the business owner wants to expand globally, other considerations are necessary and must be carefully sought and pursued. Product and service sales often necessitate the license use or acquiring through officials. It is important to contact a lawyer for additional information and to ensure these processes are valid, legal and accomplished on time.
Legal Agreements and Zoning
Nondisclosure and non-compete agreements are both important aspects to keep company information confidential and within the business. Having employees sign these could ensure IP and other processes remain secret. To relieve the pressures of possible problems with documentation, a lawyer should draft these specially for the company as well as to create enforceable conditions and clauses within a court o law. Then, if an employee does breach these contracts, he or she could go to court and have a remedy sought such as compensation for damages or a removal of working in the same industry. Non-compete agreements may ensure clients remain with the business and are not poached by certain employees.
Selection of the location for the business is crucial for a number of reasons such as zoning issues. The type of company created may determine if any zoning complications arise. Additionally, the neighborhood should be researched carefully. The community becomes part of the business, and this could cause problems with consumers if the building was placed in an area that the citizens do not approve of. Other issues with the land may exist, and contaminants may reside in the area from previous companies.
The Lawyer in Launching a Business
Businesses require the assistance of a lawyer in usual circumstances, and a business legal representative should be hired by the owner at the beginning. This may alleviate certain legal problems, complications with paperwork and other difficulties such as zoning. The lawyer may protect the interests and rights of the company and owner.
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer.