Legal Considerations for Starting a New Business
So you’ve got an incredible idea for a new business. You’ve identified a need within the marketplace, and figured out how you can solve it– making your customers’ lives easier, and providing people with an amazing new product or service unlike anything else on the market.
In order to start a small business, there are some things that it’ll be helpful to know in advance. Having as much knowledge about the process as possible will help you maximize profit while keeping your products, services, and profits protected.
How can I start a business?
You’re creating your business in order to make a profit.
In order to make a profit, however, you have to follow certain avenues to keep everything on the up-and-up.
For example, as a business, you’ll need to pay taxes. In order to determine how your taxes are going to work, it’s important to determine what type of business entity you’d like your business to be.
Examples of business entities include Limited Liability Company (LLC), Corporation, Partnership, Sole Proprietorship.
It’ll help to have a good understanding of what these entities mean.
An LLC is a private company that’s permitted by the state to handle taxes in the same way as a partnership or sole proprietorship (meaning that the owner directly pays taxes on their profits along with their personal income and expenses– rather than separately paying taxes as a business). LLCs also enjoy the limited liabilities that corporations have, which means that they can avoid personal liability for any debts or liabilities that the company may have.
In the event of a debt or liability, the LLC is legally responsible for handling it, rather than the person who owns the LLC.
Examine the market
While your ideas are surely unique and original, you should still perform your due diligence when starting a company to make sure that there aren’t any similar companies, products, or services available on the market that might create a legal conflict.
Do your research to make sure that no other company exists with the name you’re planning on using. If you do find something, you’ll most likely have to change yours– or risk dealing with a copyright infringement lawsuit.
Once you’ve determined that no one else is using the same name as you, it’s a good idea to register your name, logo, and other company materials as a trademark. This will protect you in the event that someone else tries to use your name or logo.
Make sure you’re properly licensed
In order to open most kinds of businesses, you’ll have to hold specific licenses.
For example, if you’re planning on opening a restaurant or a bar, you’ll need to consult your city or town’s licensing and zoning laws to ensure that you’ll be following food and safety requirements and holding a liquor license, if applicable.
How can I start a new business and make sure everything is done correctly?
If you’re new to the business world, the amount of permits, licenses, and tax documents that you’ll need to fill out might seem incredibly intimidating to you.
Don’t worry, and definitely don’t give up– you’ll just need to consult with someone who knows exactly how to jump through all the hoops that are required of you.
At Davidson Law Firm, we’ve been helping our clients for four decades. Our experienced attorneys know exactly how to answer your business questions– and help you obtain the proper trademarks, licenses, and permits.
If you’re ready to get started, just give us a call. We’re here to help you succeed!