Creating a business is a very legally involved process. Businesses are, of course, one of the most regulated parts of modern society. In many ways, a business is a legal contraption in and of itself. If you don’t follow the law, a court may tell you your business is invalid entirely. There is a lot to know about the law and creating a new business. Below are four interesting legal aspects of the process.
Business Structures
One of the most interesting aspects of starting a business is all the different legal structures you can choose for your business to use. The most common choices are sole proprietorship, partnership, limited liability company, C-corporation, and S-corporation. If you desire the most direct control, sole proprietorship is the best choice. However, if you wish to protect your personal assets if your business has trouble, a limited liability company or corporation is probably a better choice.
Business Transaction Law Services
Starting a business is such a complex legal process that you should not attempt to accomplish it on your own. Instead, you should hire a law firm that specializes in business transaction law services. Think, for example, of how complicated it would be to launch a new corporation with an initial stock offer without the assistance of attorneys. The same attorneys can also assist you with many other parts of the process such as meeting regulatory requirements, obtaining financing, and the complex tax planning that will be required for your new business.
Intellectual Property
Intellectual property laws are another interesting legal aspect of starting a new business. This issue can be multifaceted for you. For example, your proposed business plan may include the use of wholly new products and ways of doing business. Before you launch, you better act to protect those new ideas with patents or they could be quickly stolen by competitors. Alternatively, you have to be careful in regards to not violating others’ IP rights. Even your proposed business name may already be trademarked by someone else.
Licensing
Your business also has to acquire the proper licensing to operate in your given jurisdiction. If you don’t obtain the proper licensing, your business may be shut down immediately by local authorities. These licenses can include things like zoning permits, land use permits, general business licenses, tax registrations, occupational licenses, and a lot more.
Overall, starting a business involves conforming to a wide volume of law on the local, state, and federal level. Make sure to work with seasoned attorneys when starting your own business. Doing so can help you avoid some of the pitfalls you would fall into otherwise.