Whether you’re thinking about starting a new business or are already setting your startup plans in motion, you may be wondering how to handle your legal obligations—or how to even identify them, which is crucial to your ongoing success. Having a solid legal foundation will allow your business to grow and thrive. Here are some tips to get you started.
- Choose the right business entity.
Early on in the process, you will have to choose the legal form of your business. It could take the shape of a corporation, an LLC, a sole proprietorship, or a partnership. These business entities all operate differently in terms of liability, taxation, and other responsibilities. Consult with a lawyer to see which entities can work to your advantage—and avoid unnecessary expenses and liabilities.
- If working with partners, make sure to have a comprehensive written agreement in place.
You and your partners or co-founders should all be on the same page from the very beginning. An operating or partnership agreement clearly outlines everyone’s responsibilities, duties, and expectations. It will also identify how decisions will be made, amount of financial contributions, and even what will happen in the event of closing the business. Having the proper agreement in place will avoid conflict among you and your partner, legal and otherwise.
- Make the perfect standard form contract.
Depending on your product or service, you may want to have a standard contract you can use as a template, which can then be tailored to suit different clients or customers. Your contract should be clear and easy to understand, outline your pricing and payment expectations, and include a dispute resolution clause.
- Actively protect your intellectual property.
You should always defend your brand and your company’s creations with patents, copyrights, or trademarks. You can also consider protecting your trade secrets and sensitive information with confidentiality agreements.
- Be thorough in tax matters.
Your chosen legal entity will affect your tax obligations, so make sure you are familiar with the common issues surrounding sales tax, payroll tax, stock options, and tax incentives. You should find a reliable accountant or tax lawyer to make sure you comply with all applicable tax laws.
- Work with experts in your field.
The best way to avoid liability is to work with professionals who know your industry. A capable lawyer can fulfill several roles at once, helping you draft contracts, find employees, purchase real estate, comply with tax laws, defend intellectual property, and much more.
Don’t let legal issues cloud your vision for a successful startup company. The attorneys at Ser & Associates can provide you multifaceted legal services to cover all the bases, saving you time, money, and effort. Contact us today to learn more on how we can assist you —> 305-222-7282 or info@ser-associates.com.
