Starting your own business can be an exciting and profitable endeavor, however, there are several technical and legal requirements that must be addressed to ensure your new company begins on the right foot. When creating a corporation, some important starting points are:
- Choose Your Structure: Choosing the right organizational structure for your new business is extremely important and can have serious legal and financial consequences. Many new companies choose to organize as a limited liability company or LLC. LLCs can be appealing because they protect owners from much of the liability that arises from operation, while also retaining the flexibility and tax benefits of a partnership. Other common structures include partnerships, sole proprietorships, limited liability partnerships, and larger corporation-type structures.
- Complete and File Organizational Documents: Consider what types of documents you will need to fill out and file with the government. The documents required depend on the type of business created and the state where it was formed.
- Some typical organizational documents include: articles of organization, operation agreements, business licenses, zoning documents, and tax applications.
- Create a Viable Business Plan: taking into consideration issues such as financing, budgets, loans, future growth, and conflict management
- Protecting Intellectual Property: be sure to file for trademarks, copyrights, and patents
What Are Some Legal Issues Associated with New Businesses?
Starting a company can lead to any number of different legal issues. Legal conflicts and disputes can sometimes delay or prolong the startup process, so being prepared for potential issues can help your setup go smoothly. Some common legal issues associated with it are:
- Breach of Contract: Starting a new business often involves negotiations and contracts between multiple parties.
- When difficulties arise, sometimes parties cannot always meet their contractual obligations.
- Conflicts regarding start-up loans, financing, and capital
- Hiring/staffing issues
- Business conflicts or disputes over member rights and duties
- Business Idea Conflicts: Sometimes, a marketable idea can be “stolen” or misappropriated even before the company is launched.
- Deadlines: Some applications and forms have deadlines associated with them. Be sure to complete and file all forms and documents before they expire.
- Local Violations: Certain laws may vary from state to state and even from county to county. This is especially true regarding factors such as parking, liquor licensing, noise levels, and pollution/emissions. Be sure to check with your local business bureau or with a lawyer regarding laws that are specific to your region.
- Business Succession: corporate succession laws regulate issues such as company termination and transferring a corporation to a new owner. Even during start of the company, you should already be making plans in the event of a company transfer.
A business conflict may lead to legal remedies such as a damages award for economic losses, or an injunction order. In serious cases, a violation may lead to a loss of operating license or a denial of an application. So, it is important to research state and federal laws to make sure your company complies with regulations.
Can a Lawyer Help Me Start My Own Business?
There may be many different legal issues and subjects to consider when starting your own company. You may need to hire a business law attorney in your area if you have any questions, inquiries, or legal issues related to corporate start-up procedures. Your lawyer can provide you with legal advice and research to help address your concerns. Also, if should a legal dispute arise, a skilled business attorney can negotiate on your behalf and represent your interests in court.