Fair trading laws ensure your business operates fairly and competitively. Legal business structure: The first thing to consider when starting a business is what legal structure your business should adopt. It is important that you do your research into … 1. If you need help with legal issues in starting a business, you can post your job on UpCounsel's marketplace. LawKick is a platform enabling people to connect with lawyers online and get price quotes for … Here are seven such issues, along with considerations for dealing with them. Thus, selection of wrong and incompetent blocks can weaken the foundation of your business. Businesses cost money, and in most cases, a LOT of money. Australian Business Number (ABN) 2. While this is one of the easiest and least expensive paths to starting a small business, it also carries serious financial risks. Or, you're unhappy with the current legal structure of your business and are looking for an alternative. Please reference the Terms of Use and the Supplemental Terms for specific information related to your state. In general, a sole trader has minimal setup costs while a company protects your personal assets, like a mortgage, from being claime… Every decision has legal implications, such as the name of the company, its structure, and how the business operates. Do Not Sell My Personal Information. In the United States there are legal regulations and restrictions for all businesses. A difficulty may be getting all necessary legal advice, and mechanisms in place prior to starting. Some companies choose a name only to discover that another company already claimed it. Determining whether a China entity is required at all. In order to avoid legal trouble and fines, be sure to obtain the appropriate business license for the specific type of business that you want to operate. This is why starting a business is not as easy as you may think. You need to figure out a business model, find key employees, build partnerships and convince early customers. Starting up is hard enough without legal trouble. 20. The majority of businesses are regulated with both government and legal oversight in order to ensure that they are operating within the confines of the law. But don’t lose touch with your lawyer once your business is up and running. One that most people can relate to. 5) Legal questions. 1. Aaron George is an entrepreneur with a background in app development and law. To make sure your business meets fair trading regulations, you need to consider: Fair trading laws; Australian Consumer Law and your business; Competition and Consumer Act; Australian standards; Codes of Conduct So speak with an attorney who can explain each option for you and then listen to your vision for your company so they can guide you in the right direction for your specific situation. Tax File Number (TFN), and 4. There are many legal issues in starting a business. Your use of this website constitutes acceptance of the Terms of Use, Supplemental Terms, Privacy Policy and Cookie Policy. Employees’ rights and responsibilities need to be laid out in the employment contract. Both options have their benefits. This has tax and other implications, so you should seek some advice about the best legal structure for your proposed business, be it a limited company, as a sole trader or a partnership. You will need to make sure that the business name you plan to use is not already being used by another business. But you should know that partnerships, as all corporate structures, come with legal complications. If you will be setting up financing for your business or entering into contracts with suppliers, you should consider confidentiality and non-disclosure agreements. An attorney experienced in business law can help you through the setup process as well as other legal issues once you are up and running. UpCounsel accepts only the top 5 percent of lawyers to its site. Check with local businesses in your surrounding area and online to see if the name you want to use for your business has already been registered. There are a multitude of legal issues to think about when it comes to starting your business. Legal Issues For Startups: Business Licenses, Can I Do Business Without Registering: Everything to Know, Protect you against anyone trying to infringe on your intellectual property, Ensure that you have full and universal rights to your trademark, Are you interested in keeping your company private or will you want to. Starting a new business is a challenging pursuit. -Timothy Schmidt, WebsiteRescue Starting a new business is an exciting time. The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site. They can create legal issues for your company too. The more confidential information your business plan contains, the more important these agreements are. Hire the top business lawyers and save up to 60% on legal fees. He’s also an active blogger and the co-founder of LawKick. The level of protection needed for the business in terms of patents, copyrights and trademarks. Violation of business laws can result in a fine, closure of business, a jail sentence or other consequences. When you are selecting the location for your business, you will need to make sure it is properly zoned for the type of business you plan to operate. Every business is essentially a legal entity, with certain rights and obligations that correspond to the type and size of business, its legal business structure, its location, and other distinctions.Some of the more common types of legal restrictions on businesses include professional licensing, permits, zoning ordinances, and surety bonds. There are required registration procedures in place, depending on certain particular considerations as mandated by law. Another legal issue in business is contracts. Are you anticipating working with investors or will you remain privately funded? The majority of businesses are regulated with both government and legal oversight in order to ensure that they are operating within the confines of the law. 1. Employees are a company’s biggest strength, but they can also turn into a major legal liability if they are not managed correctly and if the ground rules of your collaboration aren’t set out from the very beginning. See this list on Nolo.com for lot's more on the legal issues you'll need to navigate when starting a business. Not enough money. Various legal issues often arise when you start a business. But with these and other event planning tips, you’ll be well on your way to a … These include registering for the following: 1. There are a multitude of legal issues to think about when it comes to starting your business. How much growth do you anticipate gaining in the future. You need to be sure that the business name you plan on using is not already in use by another company. There are many legal issues in starting a business and every decision about the company name, its structure and business operation have legal implications.3 min read. At this stage, contacting an attorney can be helpful. Trademarks are the representation of your business among customers and clientele. Pay As You Go (PAYG) … Related: Nine Common Legal Mistakes Small Business Owners Make Take plenty of time to research forming an LLC, as this is a lengthy process but an … A knowledgeable attorney can properly advise you and offer advice that specifically correlates to your particular situation. Since these outside firms will have access to business information that you may want to keep private, you should consider having them sign these agreements. Make it a habit to seek business legal advice regularly to ensure that you are protecting yourself as your business grows and changes. Generally, a new company should have no legal issues in the initial stages of development. As a young entrepreneur, you have to research the legal aspects of starting a business before you make the move. This may include: A business should also complete an online trademark search with the United States Patent and Trademark Office (USPTO) to ensure that the business name is still available. Either way, you may be considering forming a partnership. When first starting a company with few employees, their activity can be rather informal, but this is a risky course of action that legal experts do not recommend: 1. They will hold the name for a period of time, typically 120 days, while you complete any necessary paperwork. To ensure that you start off on the right note, here are the top five legal issues to consider when you start a business. Goods and Services Tax (GST) 3. It also usually implicates the following eleven issues as well. In addition, there will be particular licensing requirements before daily operations can begin. In the majority of states, registration is necessary in order to become a legal business and for tax liability purposes. The following is a basic list of seven legal issues every business should make sure to consider. Any time you have a contract between your business and a customer or vendor, it is essential that you both read and understand that contract. While many entrepreneurs have a basic understanding of the law, the majority of them do not consider the legal implications of starting a company. It is essential that you have read through and understand the checklist below to ensure you have a good understanding of the relevant laws and regulations involved in starting a business – click the links to explore in-depth articles on a topic. However, some use a company. Moreover, employees are like the building blocks of a business. When setting up in business, an understanding of the red tape involved is a must, or you will be asking for trouble. All business owners need to register the business and the business name. Use AllLaw's nondisclosure form for your business. 1. Lastly, most entrepreneurs struggle with understanding three key legal themes: How they should structure the business when incorporating. Starting your own business can be complicated, and you need to have all of your legal issues taken care of before you open. Most municipalities have rules and regulations on what types of businesses can operate in specific areas. Depending on what type of business you plan to engage in, you may need a variety of licenses or permits. It is not okay to just assume that, if your business is of the same type as the one that is currently there, the zoning is appropriate. You will need to research the type of business licenses legally required to operate in the area you formulate your company. As a business owner, you want to make sure you have covered all your legal bases to avoid any fines, lawsuits, or—worst case—even jail time. At a minimum, you will need a business license and tax registration. Read the related article on licensing requirements for more information. In the long run, investing in legal advice in the following areas can save you time and money. In some states, the information on this website may be considered a lawyer referral service. 1.) Business Structure Part of what makes it so complicated is all the legal implications that come with starting a business. Here are five legal issues that business partnerships may run into. Share it with your network! Keep in mind that your choice is not permanent. by Rachel Fields If your desired name is not in use, you should reserve it with the Secretary of State's office. Perform a knockout search before choosing a business name. Without this, it means you are taking a big entrepreneurship risk and starting on the wrong side of the law. Everything from your business name to its structure to its operation has legal implications. Many business owners operate as sole proprietorships. However, it is advisable to consult with an attorney to be sure that you are starting off as a legally sound organization. To decide what form is best, you will need to consider liability issues associated with your business and which form will provide the best tax structure for your business. Legal Issues For Startups: Business Name, 3. No need to spend hours finding a lawyer, post a job and get custom quotes from experienced lawyers instantly. The most common business structure for a personal trainer is to operate as a sole trader. Every company should have an internal code of conduct that … Forming and getting a China WFOE up and running involves more than simply securing Chinese government approval for the new entity. Copyright ©2021 MH Sub I, LLC dba Nolo ® Self-help services may not be permitted in all states. A few-hundred-dollar investment with an IP lawyer will potentially saveyou from realizing a major mistake down the road, like infringing upon another company’s trademark. You will need to decide which business structure best suits your business.Your business could be structured as a sole-proprietorship, partnership, limited partnership, corporation, S-corporation, or limited liability company. Starting a business in China usually involves forming a Wholly Foreign Owned Entity or WFOE. If so, an alternate name will have to be chosen. At the very minimum, you will require a business license and tax registration. Was this document helpful? However, what starts out as an opportunity for someone to be productive with his or her day and perhaps earn a bit of money, too, is actually fraught with potential legal pitfalls. Everything from your business name to its structure to its operation has legal implications. Verify with the appropriate state agency, usually the Secretary of State office, by completing a thorough name search. Corporate Organization: Form and State of Organization As a business owner, you want to minimize your liability. If your chosen name is not already in use, you can reserve it with the Secretary of State's office for a period of time, about 120 days, while you prepare your articles of incorporation, articles of organization, or a partnership agreement. What follows is a sampling of some of the legal concerns you may want to address with … Zoning may have changed while the other business was operating, and that business might have been provided an exemption that won't be provided to yours. Consider the answers to the following questions to help determine how best to structure your company: Carefully consider how you wish to proceed when you register your business. Many entrepreneurs dread dealing with the legal aspects of starting and managing a business--mainly because many don't know where to start.