Running a business on your own takes a lot of effort and endurance, and nothing makes it more complicated than the legal roadblocks one might encounter along the way. It’s understandable that hiring a lawyer or getting professional help is costly and not ideal especially if you run the show on your own. But with possible penalties and unwanted problems, it’s best to take preventive measures from the start to ensure your business thrives in the long run. Here are the important things you need to take care of:
Your company needs a defined structure to progress through trying times. Being a one person show often means you get to make this decision on your own. But be careful, choosing to be an LLC (disregarded entity) over a sole proprietorship could set the future you want for your company in stone, even if you’re eventually willing to open it for more members or shareholders. Other structures are also available that may be suitable for your business.
As the sole owner of your business, choosing the right tax entity means a lot to the direction you want your business to head towards. Not only do you need to consider the amount of money you’re making, but also how the company generates income and profits. You also need to consider if you plan to do business in other states as it would require additional registration and fees with the authorities.
If the business you run involves your original ideas or creation, then you better get it covered by the law before someone steals or exploits it. Inventors and entrepreneurs mess up on this part because most of them neglect the fact that their creations are easy targets for plagiarism and profiteering. DON’T WAIT for a complication to come up. Get the necessary IP, Trademark, Copyright and NDAs and Privacy policies for your company. Not sure what to get? Leave us a message, and we’ll be able to help.
Registration, Licenses, and permits:
Not getting the right documents could mean you the state would eventually shut you down for not being compliant. Registration is necessary as it helps the state recognize that the business you’re running is legal and it also provides protection. Obtain the right licenses and permits, depending on the type of business you’re running as it could be a long list of requirements. A visit to your city hall can prove to be helpful.
You may not totally rely on getting additional hands on board, but you may occasionally hire an independent contractor for specialized tasks you can’t handle. Now it’s important to secure the right Disclosure and Independent Contractor agreements to make sure you’re not putting your business at risk by letting a third party do work for you. You must make sure that you and your company own whatever work is done and creations being made and that they must dispose or surrender property or copies to back by the end of their term. A well-drafted agreement should also have clauses that cover termination, warranties, and fees among other things.