There is no doubt that starting a new business is a fun and exciting time in your life. But, you can become so overwhelmed and excited that you forget about some very important steps to take before you open for business.
Thinking about the future of your company is key to your success, and as such, keep in mind these five legal steps to take when starting a new business.
While you can certainly open your business as a sole proprietor, you may want to consider the advantages of incorporating.
Whether you form an LLC (Limited Liability Corporation) or another type of corporation, you should consider the advantages and set up the corporation as soon as possible. Incorporation helps protect your personal assets in the event you’re sued by a client or creditor.
2. Business License
Many different occupations require a business license to practice, as well as a number of business types.Whether this is a license through your state, local or federal government, before you open your doors for business, you need to look into the different types of business licenses you may need.
Whether this is a license through your state, local or federal government; before you open your doors for business, you must look into the different types of business licenses you may need.
3. Contracts and Agreements
You may need to hire subcontractors at some point, or you may be going into business with another individual.
Make sure that you’ve prepared all necessary non-disclosure agreements, partnership contracts and the like before you open your doors. Contracts should state basic legal necessities like fees incurred, services to be rendered and confidentiality about your company.
4. Logo/Trademark Protection
Your company’s logo is more than just an image; it’s uniquely yours and becomes your businesses’ identity. As your business grows, your logo’s value grows.
If you don’t protect your logo or trademark as soon as you open for business, a competitor can use them to take your customers away.
5. Employer ID Number
Another thing you should do right away is to obtain an employer ID number (EIN) from the IRS.
This is essentially your company’s social security number so that you can distinguish your business from you. This will allow you to pay employees and also can help your business build credit.
Bottom Line on Legal Tips
No matter the type of business you’re starting, you must consider retaining legal help from an experienced business attorney who can help make sure your business is protected and ready to grow.