A new business arises initially from an idea. It could involve selling a brand-new creation or providing a service that consumers need. It’s an exciting time for entrepreneurs, but it’s important not to get carried away and forget to legally protect the company.
Outlined below are some important legal steps to take when starting a new business.
Getting the structure right
One of the first things that needs to be addressed is the structure of the business. There are numerous options for business owners to choose from. For a small side venture, the business may only need to take the form of a sole proprietorship or partnership. The advantage of this is that the business can start trading almost immediately. The downside is that the owners may be vulnerable in terms of personal liability.
For larger companies or at least businesses with large ambitions, incorporating may be a better option. Forming a corporation shields the owners from personal liability should a legal claim be made against the company.
Getting the name right
The company name is a pivotal aspect of the overall brand. The name should be memorable, and tie in with the key aspects of the brand. Importantly, the name should also not already be in use.
Business owners should thoroughly search trademark registers to ensure that nobody is already using the company name or something similar to it. Once business owners have established that the name is unique, they should take steps to protect the brand, such as registering trademarks.
These are just two of several legal steps that entrepreneurs need to remember. To ensure you have everything covered, it’s best to seek legal guidance at the earliest opportunity.