3 Legalities to Remember When Starting a Business

Prospective business owners who may be considering launching a new venture or startup may be surprised at the number of legal issues that may need to be addressed. Failing to obtain the proper permits or failing to structure a business correctly can prove to be a very costly mistake. Ensuring that all of the legalities have been managed correctly is never a concern that should go overlooked.

Licensing and Permits

The number and type of permits required in order to start a new business can vary tremendously depending on issues like the type of business or its location. Obtaining all pertinent licensing and permits is something that should be done at the earliest opportunity and new business owners would be wise to outline and address all such concerns during the planning stage. Fines, citations and the other potential consequences that businesses may face should they lack the proper permits can be very costly and may even place the survival of the business in jeopardy.

Trademarks and Intellectual Property

From the name and logo of a new business to various workflow processes or proprietary technology, protecting trademarks and intellectual property (IP) rights can be a matter of the utmost importance. A patent infringement can quickly become a costly legal battle and businesses that fail to protect their IP could end up losing ground to their competitors. Even a successful ruling or verdict during a trademark suit can be costly and require businesses to obtain pre settlement loans in order to cover their operational costs. Taking whatever steps may be necessary to avoid such problems is often the most cost-effective way to deal with the matter.

Structuring a Business

From corporations to partnerships, there are many different ways to structure a business. White selecting which type of business structure may seem like a formality, this is an important decision one that may have long-term repercussions. The type of structure may impact how a new business is taxed, what funding and financial resources can be made available and even how future mergers or acquisitions may be handled.

Starting a new business is always a major undertaking and entrepreneurs typically have plenty of issues that will all require attention. Even a seemingly minor legality can lead to serious problems in the event that it goes overlooked. Making sure that the legal issues associated with starting a new business have all been properly dealt with can go a long way towards ensuring new ventures will be able to start out on the right foot.