Legal Matters of Concern for Startups
With any burgeoning startup comes legal concerns, many of which young entrepreneurs do not understand. Ignoring business law matters can have a disastrous effect. Here are a few judicial issues that require attention from every budding company.
Trademarks
The title you pick for your venture is essential to your branding and needs to be protected. Additionally, this applies to product names and slogans. Without important elements being trademarked, your intellectual property is vulnerable to theft. Any unsavory vagabond can take your ideas and sell them as their own. You should also check that someone else has not trademarked the names you want. Otherwise, you could face a lawsuit. Consult your secretary of state’s website for more information.
Taxes
Corporations that fail to properly pay taxes are flirting with serious trouble. Even honest mistakes can result in fines and jail. Always follow the letter of the law regarding taxes. The type of legal entity you form, whether a C corporation, S corporation, or Limited Liability Company, will have serious tax implications. This decision also impacts how your business may function, so choose wisely.
Regulations
Various capitalistic ventures have specific requirements for operation. Economic regulators, for instance, heavily monitor financial entities. Restaurants must abide by food handling protocols instituted to ensure a minimum of foodborne illness. Manufacturers endure inspections from safety boards. Make certain that your company is adhering to whatever rules apply. A qualified business attorney can help verify that you are in the clear.
Employees
There are many legal dimensions to hiring staff. For starters, you must be sure that paycheck withholdings are accurate and that mandatory benefits are being provided. Safety laws must be closely followed and there are strict regulations regarding discrimination and frequency of breaks. Many worker-related laws are dependent upon the state where you function. Avoid getting into legal hot water by addressing these concerns before bringing workers aboard.
Permits
Different companies require unique licenses. No matter what sort of business you handle, make sure you have full legal permission to operate. Failure to do so could result in a complete shutdown of your establishment. Besides acquiring general operation and sales licenses, find out whether you need a land-use permit, liquor license, or another form of occupational approval.
Business law is a serious matter that every corporate ace must address. Ignorance of legal concerns is not an excuse and can be calamitous. Address these matters before opening and avoid legislative trouble.
