If you’re an entrepreneur making moves to form your own company, this is very exciting. It’s an opportunity to potentially make money and show the world what you have to offer.
Nonetheless, there are no guarantees of success and there are also legal pitfalls to be aware of. Outlined below are two key legal aspects of starting a business.
The company structure
The ideal structure for your company will largely depend on your ambitions, but there are several options to choose from. If you’re setting up a small business for a side income, then a sole proprietorship might work. This means that you can set up quickly and use your personal banking accounts. Nonetheless, it also means that you may be personally liable should anything go wrong, such as getting into debt.
For larger scale companies with the ambition to grow rapidly, a limited liability company (LLC) structure is often the best choice. This shields you from personal liability should a claim be lodged against the business. However, the structure is a bit more complex than a sole proprietorship, with key decisions typically requiring the approval of shareholders and directors.
Intellectual property
One area where new business owners often have issues is intellectual property (IP). IP typically refers to aspects that make your brand unique. These include your company name, logos and technology. All of this can be protected through trademarks, copyrights and patents, but this doesn’t happen automatically. Protecting your intellectual property means separating yourself from the competition, which is key to the success of any business venture.
These are just two key areas to consider when starting a new business. To get a well-rounded idea of how to protect your company legally, it will benefit you to seek legal guidance.