If you’re an entrepreneur starting a new business venture, you may feel overwhelmed by the number of decisions you need to make. On the legal front, there are many decisions you will make during the start-up phase that can have long-lasting consequences. If you don’t have experience or expertise in these areas, the decisions you make could affect the health and longevity of your new enterprise.
Here are some legal tips to ensure your new business gets off to the right start:
Choosing the Right Legal Structure
Starting out right means choosing the right business structure for your company. Will you operate as a sole proprietor? Limited liability company (LLC)? S Corp? C Corp? Partnership? There are pros and cons to each type and an experienced business attorney can help you navigate which legal structure best fits your personal and professional needs.
Protecting IP
Most startups have intellectual property (IP) that needs protection, even if it’s only your branding. If you do not protect your IP with a patent, a copyright or a trademark, you risk losing your right to produce and market your products or services and could endanger your ability to seek legal recourse if a competitor infringes on your IP. There are several ways to protect IP, including the use of non-disclosure agreements if you have employees or contractors who have been involved in the development of your product, service or brand.
Employment Laws
There are numerous federal and state regulations that govern the employer-employee relationship, and running afoul of these laws can open your company up to costly litigation. Having the expertise of an attorney who is well versed in employment law is critical when it comes to developing employment agreements and company policies.
Contractual Agreements
There are a number of contractual agreements that will be the bedrock of your new enterprise, including a founder’s agreement (if there is more than one person involved in the startup), partnership agreements, an operating agreement if you choose to operate as an LLC, and contracts between your company and its employees, customers and vendors. Do not make the common mistake many entrepreneurs have of relying on verbal agreements; always get agreements in writing!
Johnson Legal PC specializes in business and corporate law and can assist your organization in achieving its full potential. Contact us to learn more about how a great corporate attorney can help your business thrive.
