Starting a new business is exciting, but there are many unknowns that could end up leading your company into trouble. Planning early may help you avoid some of these issues.
Common legal issues that new businesses face include:
- Failing to incorporate correctly
- Choosing a company name that is already trademarked
- Not working with the right legal counsel
Each one of these is problematic, because if a business makes an error, it could lead to liability issues and lawsuits.
- Failing to incorporate
When you incorporate your business, you’re taking steps to protect yourself and your interests. With an incorporation, you separate your business from your personal assets. Simply having “inc.,” or “LLC” after you business name is enough to show others not only that you’re legitimate but also that you have incorporated correctly and protected your personal assets.
- Choosing a trademarked name
When you choose your business’s name, you have to be cautious. You should make sure that no other business already uses that name and that no business has trademarked it. If you use another business’s name or something too close to it, you could end up receiving a cease and desist or find yourself embroiled in a lawsuit.
- Not working with legal counsel
Finally, the last legal issue businesses run into is completing legal tasks without the support of the right legal professionals. When you fill out contracts, file paperwork with the state or government and do other tasks, you need to know that they’re done right. Not having the right legal counsel may mean that you make errors that are costly to correct. Avoid that by making sure you have someone you can turn to as you set up your business and handle all legal aspects of your business correctly.
These are three common issues that new businesses face. Setting up your business with these and other issues in mind will help you prepare for the future and know what to expect if you run into trouble. The right legal help now may make a big difference as you move forward and grow your business.