People who commence their business have a lot of responsibilities to deal with. You have to take the overall management in your hands, look after the products and services, arrange finances, and get started with the new business. But what’s the first step a new entrepreneur must take before commencing their startup? Well, you must consult with the attorney.
Starting a business involves several legal issues that a new entrepreneur might not be able to manage alone. You definitely need a professionalbusiness lawyer, who can clear all your legal doubts and help you minimize the potential legal risks. If you have finally arranged a meeting with the business lawyer, here are the 7 most important topics you must discuss with him.
There are many business laws that must be addressed before you start your business. One such crucial part of your startups is its structure. Until the business owner gets their company registered as a formal business entity, the business will be considered either sole proprietorship or a partnership.
Furthermore, such companies and their owners are considered the same entity by law. If your company goes insolvent, you will be held liable for such obligations. To avoid these liabilities, the owner can decide to form a limited liability company or a corporation. By limiting the liability, the owner’s liability will be limited to the amount they had invested in the business. You must consult with a business lawyer to choose the perfect business structure for your company.
First thing first, your attorney cannot help you with the tax management part. The tax payment and its entries in the books of accounting are managed by the CPA. However, legal counsel can explain all types of corporate taxes and their payment plans to the business owners.
A professional attorney can even refer to the best CPA that can take care of your tax accounting issues effectively. There must be good coordination between the CPA and an attorney to ensure that the tax accounting is carried out smoothly.
Sure, people select the most suitable business name for their company before even starting the firm. But, you can’t issue business cards before registering the business name. You must select a business name that meets the state laws. Usually, a business cannot pick a name that is used by some other entity. The name you choose for the company must be unique. A business lawyer can help you pick the perfect and legally available name for your startup. Additionally, they can also trademark your company’s name and complete all the paperwork.
Not every business owner is aware of the federal and corporate laws that are applicable to your company. You get into legal complications if your business fails to comply with the legal obligations.
Federal and corporate laws include employment, wages, labor, health, and welfare of the society, consumer protection, and other important laws. It is better to consult with a business lawyer and understand each law in detail. This way, you can minimize the risk of violating state laws.
If you are running a partnership firm or a company that has multiple owners, you must assess the responsibilities and ownership of each partner. You can create a legal form, in which, the duties of each partner are clearly specified. Moreover, the contract will also act as evidence if any confusion of conflict arises in the future.
When you get everything in writing, you can rest assured that everything is handled legally. Now that the contract is signed by each party, there is no risk of future disputes.
Trademark is a crucial element of your business. It helps people to distinguish your entity from other firms. The business card, logo, and slogan are all part of the company's trademark. The owner of the company is responsible for the protection of intellectual property. To ensure that your company's name, logo, slogan, and other intellectual properties stay safe, you must register the trademark.
Corporate laws that are applicable to a firm can vary from state to state. While some of the business risks can be minimized with trademark registration and business contracts, other risks may involve insurance protection. The best way to ascertain your business risks and minimize them is by consulting with your attorney.
A legal counsel can help you identify the most common business risks and how to avoid their violation. Even if your business is running smoothly, it is better to stay in contact with the business lawyer and discuss the potential risks.
These were the topics every new entrepreneur must discuss with the attorney before commencing their business.
