Starting a business can be a daunting task. There are so many things to consider, and you want to ensure that everything is taken care of before you get started. One thing that often gets overlooked is legal issues.
Legal concerns can be hard to navigate, and not understanding your rights could lead to major financial losses down the road. In this blog post, you’ll learn some of the most common legal issues businesses face when starting up and their solutions!
Have a Business Name
If you don’t have a business name, it can be difficult to get bank accounts or file your LLC. You need both the entity and its operation name for this step!
Register Your Business
You also want to register with the IRS as soon as possible to comply with any tax laws. The faster you do this, the less likely you are to run into any legal issues.
Signing Employment Agreements
If you plan on hiring employees, it is important that they sign an employment agreement before starting work. Also, make sure not to discriminate in your company’s hiring policies!
On the other hand, it’s essential to have multiple Labor Law Posters within the office to actively educate your employees on the rules and regulations.
Have a Lawyer
It is advisable that every business have a lawyer to create their operating agreements because this sets up the rules for how the company will run.
Legal Operations Every Business Needs
It is vital to understand the legal issues and protections you need when starting a business. There are numerous laws for taxes, labor, environmental protection, zoning, and many more that may not be obvious but can impact your business significantly if you don’t take care of them upfront.
Some essential items include incorporation and registration, trademarking (trademarking can also take care of website domain name registration), intellectual property, licensing to conduct business, and others.
Incorporate Your Company
Incorporating your company will protect it from creditors and other debts after bankruptcy or dissolution. However, it’s important to note that a sole proprietorship is not an incorporated entity which means if you do not incorporate, then the risks are higher.
If you have employees, it is essential to consider labor law which states that an employer must pay minimum wage and overtime as appropriate for hours worked over 40 hours in a workweek. It’s also mandatory by law to put together and maintain a set of workplace rules.
Other laws may apply depending on the type of business.
Know Your Location
It’s important to know the zoning for your business location. Some areas may not allow certain types of businesses or could be subject to other limitations that you should consider when deciding on a space.
Trademarks can protect against infringement and also serve as an indicator in interstate commerce, which is why it’s so important that you trademark your business name and domain.
A license is required to operate various businesses in the U.S., including selling alcohol, using toxic materials, or handling animals. Licenses may be granted by federal agencies like the FDA but also at the state level for certain activities as well.
The number one thing you can do before starting a business is to gather the necessary legal documents and understand what’s required. This will help you save time, money, and headaches in the future.
To make sure that you don’t get in trouble with the law, take a look at this list of legal issues to watch out for when starting your business. Do some research into what these things are and how they can affect your company, so you know what to be on guard for. Don’t let ignorance or lack of information put you and your business in jeopardy!