Starting a business is an incredibly exciting endeavor. Still, it’s important to remember that several legal steps must be taken to protect yourself and your company. You can learn more about the membership experience to help you make the most out of your business, but if you’re working under illegal circumstances, you can quickly find yourself in a difficult and risky situation.
To ensure that you’re properly informed and legally protected, here are six legal considerations every business owner must know.
Business Structure
The type of business structure chosen will majorly impact your taxes, liabilities, and other legal matters. Before launching your business, it’s important to decide on the right structure for your company, such as sole proprietorship, partnership, limited liability company (LLC), or corporation.
Licenses and Permits
Depending on your business type, you may need to obtain certain permits and licenses to operate legally. Research the local and state requirements to determine what licenses or permits are needed for your business, such as zoning permits or professional licenses.
Taxes
When running a business, there are taxes that must be taken into consideration. Ensure you understand federal and state income tax regulations, payroll taxes, self-employment taxes, estimated taxes, and other local taxes for businesses.
Employee Laws
Businesses with employees must be aware of employment laws, such as minimum wage regulations, overtime pay requirements, paid leave regulations, and anti-discrimination laws. Ensure you are familiar with all the legal obligations related to hiring and firing employees before making any personnel decisions.
Contracts
You must draw up legally binding contracts when entering any business agreement, such as a loan, vendor, or customer service agreement. Ensure all the terms are spelled out in the contract, and consult with a lawyer if you have any questions.
Intellectual Property Laws
If your business is involved in the production of a product or service, you must be aware of intellectual property laws. Suppose you use another company’s trademarked logo or copyrighted material for your business. In that case, it is important to ensure that you have permission from the owner and that proper credit is given.
By taking the time to understand these legal considerations, every business owner can ensure that their venture is legally protected and compliant. It’ll help reduce the risk of legal issues down the line, so it’s well worth taking the time to research and consult with professionals as necessary.
