Keep in mind that your choice is not permanent. 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. If you need help with legal issues in starting a business, you can post your job on UpCounsel's marketplace. When setting up in business, an understanding of the red tape involved is a must, or you will be asking for trouble. Forming and getting a China WFOE up and running involves more than simply securing Chinese government approval for the new entity. While this is one of the easiest and least expensive paths to starting a small business, it also carries serious financial risks. The level of protection needed for the business in terms of patents, copyrights and trademarks. There are a multitude of legal issues to think about when it comes to starting your business. Aaron George is an entrepreneur with a background in app development and law. 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. 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. 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. They are trained to help new business owners: Remember that although you may have ownership rights for your specific brand name in the United States, another company may operate under the same name in other countries. 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. Every decision has legal implications, such as the name of the company, its structure, and how the business operates. Various legal issues often arise when you start a business. 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. Legal Issues to Consider When Starting Your Business, 2. What legal issues have you run into since starting your app business? 1. For example: You need to check whether your business requires any licence (for example, to run a nursing home) and if so obtain one. 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. You may be involved in negotiating the lease on business premises. If your desired name is not in use, you should reserve it with the Secretary of State's office. Legal Issues to Consider When Starting Your Business. As a young entrepreneur, you have to research the legal aspects of starting a business before you make the move. 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. Many entrepreneurs dread dealing with the legal aspects of starting and managing a business--mainly because many don't know where to start. Depending on what type of business you plan to engage in, you may need a variety of licenses or permits. Starting a business in China usually involves forming a Wholly Foreign Owned Entity or WFOE. Thus, selection of wrong and incompetent blocks can weaken the foundation of your business. Or, you're unhappy with the current legal structure of your business and are looking for an alternative. At the very minimum, you will require a business license and tax registration. One that most people can relate to. Here are the five legal issues to consider when starting a business with a special needs individual. 1. 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. However, it is advisable to consult with an attorney to be sure that you are starting off as a legally sound organization. What follows is a sampling of some of the legal concerns you may want to address with your attorney before you start your business. In the United States there are legal regulations and restrictions for all businesses. Determining whether a China entity is required at all. They will hold the name for a period of time, typically 120 days, while you complete any necessary paperwork. 1. These include registering for the following: 1. All business owners need to register the business and the business name. 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. Copyright ©2021 MH Sub I, LLC dba Nolo ® Self-help services may not be permitted in all states. Starting up is hard enough without legal trouble. Was this document helpful? Perform a knockout search before choosing a business name. Your use of this website constitutes acceptance of the Terms of Use, Supplemental Terms, Privacy Policy and Cookie Policy. The more confidential information your business plan contains, the more important these agreements are. Please reference the Terms of Use and the Supplemental Terms for specific information related to your state. Learn about common legal issues faced by entrepreneurs when starting a small business as well as the difference between ethics and legalities. Verify with the appropriate state agency, usually the Secretary of State office, by completing a thorough name search. Moreover, employees are like the building blocks of a business. 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. 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. 2. At a minimum, you will need a business license and tax registration. Hire the top business lawyers and save up to 60% on legal fees. If you are ordering a thousand gizmos for your grand opening, you don't want the supplier to call your competitor to see if they want a thousand gizmos so that they can offer them on the same day. UpCounsel accepts only the top 5 percent of lawyers to its site. 1.) Here are seven such issues, along with considerations for dealing with them. 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. Although cash flow can be tight when starting out, this is an important time to receive professional advice, as it may limit the risk of unintended issues … But with these and other event planning tips, you’ll be well on your way to a … To ensure that you start off on the right note, here are the top five legal issues to consider when you start a business. 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 You can do this by doing a name search with the appropriate state agency, which is usually the office of the Secretary of State. Everything from your business name to its structure to its operation has legal implications. If so, an alternate name will have to be chosen. 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 … Lastly, most entrepreneurs struggle with understanding three key legal themes: How they should structure the business when incorporating. Australian Business Number (ABN) 2. Starting your own event management business requires an understanding of what common problems you might run into while on the job. In the majority of states, registration is necessary in order to become a legal business and for tax liability purposes. 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. Use AllLaw's nondisclosure form for your business. There are a multitude of legal issues to think about when it comes to starting your business. 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. 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. Another legal issue in business is contracts. 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. The licences and permits required by their city, county, state and country. 1. As your client base changes or grows, you can always restructure to suit your new needs. 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. 5) Legal questions. 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. 20. Everything from your business name to its structure to its operation has legal implications. While many entrepreneurs have a basic understanding of the law, the majority of them do not consider the legal implications of starting a company. 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. As a new business owner, you should be familiar with all the legal considerations as you start your new business. If a company in a sole proprietorship is sued, the owner’s personal assets could easily … They can create legal issues for your company too. Without this, it means you are taking a big entrepreneurship risk and starting on the wrong side of the law. Not enough money. In addition, there will be particular licensing requirements before daily operations can begin. Unless you have a legal background, you should always have a lawyer approve any contract that your business creates before putting it into use. In the long run, investing in legal advice in the following areas can save you time and money. In general, a sole trader has minimal setup costs while a company protects your personal assets, like a mortgage, from being claime… Either way, you may be considering forming a partnership. 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. At Coffman, DeFries & Nothern, P.A., we have experience working with businesses. 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. It is important that you do your research into … Here are five legal issues that business partnerships may run into. Want High Quality, Transparent, and Affordable Legal Services? Are you anticipating working with investors or will you remain privately funded? 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. Businesses cost money, and in most cases, a LOT of money. by Rachel Fields Top 8 Legal Issues Regarding Entering The China Market ... A company seeking to do business in China should consider the issues carefully and discuss them further with legal counsel. Getting business advice and legal help from a small business lawyer is a smart way to start a business off on the right foot. Not Securing Your Business Trademarks. Many business owners operate as sole proprietorships. LawKick is a platform enabling people to connect with lawyers online and get price quotes for … What other legal issues do I need to consider when starting a business? There are several different business structures that you can choose when you’re forming your company, including LLCs, S corporations, C corporations, partnerships and sole-proprietorships. Legal Issues For Startups: Business Name, 3. 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