You either ARE an entrepreneur or know one well. It’s no secret that they’re passionate, committed, hardworking, and busy people. Understandably, business owners spend (much) more than 40 hours per week simply trying to keep the lights on and turn a profit. It’s during these hectic times, often in a company’s early stages, that important legal considerations can fall by the wayside. We have chosen five of these considerations to highlight in this blog post so business owners don’t make the same mistakes countless others have made before.
- Incorporating or choosing the right business structure. Many self-described “solopreneurs” are perfectly content to be indistinguishable from their business. For these individuals, many of whom simply make a little extra money from their side hustles, operating sole proprietorships is acceptable. However, this legal structure doesn’t offer the business owner any personal liability protections. There are so many things to weigh when choosing the right business structure, and picking the right one is crucial for your company’s long-term success.
- Registering intellectual property. As the owner of a startup, your most valuable assets are your intellectual property (IP). Your trademarks identify your business on its products, your copyrights protect original artistic works, and your patents protect your inventions. You lose a significant amount of legal protections if you fail to register your company’s precious IP.
- Registering their domain and instituting terms and conditions for the website. It’s difficult for a business to make it in the third decade of the 21st century without having a robust online presence. As soon as you have chosen a name for your business, register a domain that reflects the name. Once you have your website operational, you need to have a privacy policy (generally required) and terms and conditions.
- Keeping personal and business expenses separate. Despite how many business owners seem to partake in it, commingling of personal and business expenses can be a huge problem. If you have gone through the trouble of setting up an LLC or corporation, you need to make sure you are keeping your personal and professional finances separated. Otherwise, you are in real danger of losing the limited liability status. That means refraining from putting business assets on your personal credit card.
- Getting the help of professionals. It’s important to have the help of an experienced attorney when you’re setting up your business. Some entrepreneurs mistakenly believe that businesses don’t encounter legal issues until they begin to scale or expand. The fact is that legal issues are one of the most common reasons for small-business failure. Attorneys, tax professionals, and others help entrepreneurs be compliant and have necessary paperwork and permits on hand.
We Help Entrepreneurs Realize Their Dreams
Our firm understands how many things can slip through the cracks for entrepreneurs. Still, not addressing the important legal considerations can sink your enterprise before you even get things going. We would be honored to help you take care of these issues so you can grow your company. Reach out to us to discuss your options soon.
Law Office of Ray Garcia, P.A.
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