There are several legal requirements that must be in place before you start your own business and some of the often overlooked, important, often requirements are legal issues.
First and foremost, you must ensure all your business aspects are safely protected including insurance and preserving the company's intellectual property. Here is some legal advice you should consider:
As the owner of a start-up business, you must choose what kind of business you are setting up. Do you want a corporation, partnership, LLC, Limited Partnership, LLP, or Sole Proprietorship? Knowing which form of business you are leaning toward will depend on business ownership, the industry, your objectives, regulatory requirements, your financial needs, and capital structure.
You and other founders, or co-founders, must agree on the relationship between all key players such as owner(s), officers, lenders, investors, lenders, and other important contributors. This is critical because the relationships must be included within the company's corporate documents. These documents include the following agreements:
Articles of Organization /
Operating Agreement /
Partnership Agreements /
Shareholders Agreements /
Financial and Investment Documents
You must include compliance issues such as the proper licenses, zoning requirements along with any other regulatory/government filings. Starting a business, you must understand all the compliance requirements beforehand.
You and your fellow founders must fully understand the federal, state, and local laws before hiring employees. You must have worker's compensation, tax and payroll, benefits, appropriate local registrations, and licenses in place. You should know the guidelines or framework between the employer and employees. Understanding the guidelines will lay out the rights of employers or employees along with what will be expected from both sides.
When examining taxes and insurance, it's critical to get with experts in the field before committing yourself and the business. Compliance and risk management should be at the top of the list from the get-go because they can send business on its head even if you think everything is moving along smoothly.
Even if all is said and done, it's really important that you contact an attorney to discuss your overall incorporation, what needs to be in place, and the best way to make sure you have met all local, state, federal requirements.
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