There are several legal issues to take into account when starting a business. Everything from your business name to its structure to its operation is affected. That’s why you need the help of a good lawyer. Here are some common legal concerns you have to address:
Business Name
Ensure that the business name you intend to use is original and isn’t used by another entity. Check this by conducting a name search with the correct state agency which is often the office of the secretary of state. If your chosen name is available, you can reserve it with the secretary of state’s office for about 120 days. This will give you enough time to prepare your articles of incorporation, articles of organization, or a partnership agreement.
Trademarks
You also have to register your trademark. Reserving a domain name won’t guarantee legal rights. Federal trademarks normally take precedence over domain registrations so register the trademark federally. Choose a distinctive name so it won’t be confused with others.
Co-Founders
Make a note of your deals with co-founders. This is important to help you settle any disputes that arise later.
Employees
Take into account the legal issues of hiring employees. The largest area of potential liability for an entrepreneur happens to be employment law. Don’t neglect the rights of your employees.
Bank Accounts
Your business and personal account are two different things so keep them separate. You require a business checking account to pay for goods at wholesale prices while your sales tax certificate shows that you’re entitled to wholesale prices from suppliers. Take note if you borrow personal money to pay for your business. This will tell you at the end of the year whether you made a profit.