Business Law: What Every Start-Up Needs To Know
Monday, February 9, 2015, 6:00 AM | Leave Comment
Starting a business is not as simple as coming up with a name and opening your doors. Indeed, there are numerous laws new companies must be aware of as they start down the road of success.
Here are a few things you should know when starting your own business:
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Registered Business Type
As a new business, you are subject to the taxes that come along with it. Though sole proprietorship might be more appealing because of the lack of paperwork, it is extremely limiting on those that plan to expand.
Aim for a LLC or a corporation. Though more expensive, they also come with more advantages. This of course will depend on the nature and size of your business, and the pros and cons should be thoroughly evaluated.
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Employment Documentation
If you are aiming to be a large company, your beginnings will usually involve more than one person. Unfortunately, many places completely forgo proper documentation mainly due to lack of preparation.
Before hiring anyone, make absolutely sure you have your core hiring documents ready to go.
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Standard Contract
Sometimes contracts are just for clients while other times the contracts are for the customers. No matter, you should come up with one standard form that can be altered to suit your various needs. This gives you both uniformity and the time to make sure all of your rules and stipulations are in place.
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Intellectual Property
Your company, being new, will be offering something original to the market. It must be protected, and you must ensure it does not infringe on the rights of others. Some of the protections you can procure are patents, copyrights, trademarks, trade secrets and service marks.
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Taxes
There are six key things you must understand and adhere to with your fledgling business to make sure the audits go smoothly. These are the legal entity, sales tax, payroll tax, section 83(b), stock option issues, qualified stock business stock and tax incentives.
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Legal Council
Speak with an attorney. While your intentions may be pure in regards to funding a business trip or trying to cut costs to reduce expenses, one little slip up can leave your new company crushed.
Seeking out the help of a professional means you’ll be able to avoid all of these pitfalls. You can even find an adviser for each specific part of the business.
Don’t assume you know how to successfully steer your business through the trials and tribulations of the first year or two. Laws are complicated and can really disrupt your plans if ignored.
Informational credit to Doré Law Group.
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