The advantage of running a small business as a sole proprietorship is that, unlike more advanced legal business structures such as businesses, no filing or special documents are required to set up and operate a business. The downside of operating a sole proprietorship is that if your business is sued, the litigant could sue not only your business assets, but also your personal assets. This could include your home, car, and bank accounts. Small businesses can be structured in many ways. We have already talked about sole proprietorships in point 6, but as a reminder, the default option for company structures is a sole proprietorship. The disadvantage is that there is no separation between the business and the business owner. Intellectual property is the bread and butter of many companies. IP also includes patents, copyrights, trademarks and trade secrets. Make sure you file all patents as soon as possible – a process that can take more than five years. Protecting your intellectual property will be attractive to investors, but it will also help you sleep better at night.
Having the exclusive rights to reproduce and display your work will make your life much, much easier and ensure that no one tries to tear IP mats under your feet. A brand is one of the most important business assets you will ever own. It distinguishes your company and its products in the market. Learn about a wide range of financing options to start your business, such as government-backed loans, grants and other forms of financial assistance. Small businesses also need to be aware of their state`s laws and regulations, as well as any licenses or permits that may be required to operate in the field. You can find this type of information on your state`s website for the Secretary of State or by contacting the Small Business Development Center (SBDC) for assistance. Note that the supervision of these law students is carried out by legal organizations and professional lawyers, as students are not yet authorized. It is unethical for them to independently give free (or paid) legal advice to someone or a company until they graduate. Starting a new business is a challenge.
Part of what makes things so complicated is all the legal implications that come with starting a business. As a business owner, you want to make sure that all of your legal bases are covered to avoid fines, prosecution, or in the worst case, even jail time. Patent, copyright and trademark laws protect your company`s intellectual property, unique creative production and branding. Small business lawyers point out that it`s easier to protect your intellectual property than to deny unfair use after the fact. Email marketing is a big part of many businesses. If you`re sending emails to your customers, or targeting potential customers through email campaigns, you need to determine which email regulations apply. Note that each country has its own rules. Bar associations allow you to search for useful legal information or answer your legal question from their members in a «ask a lawyer» style. These companies work much like consulting a professional lawyer in the way they provide information that sweeps the surface to help you get started.
Here you can get help, which consists of licensed lawyers who answer questions based on their area of practice. An LLC is a business entity incorporated under state law that can protect you from personal liability. LLCs are becoming the most popular way to start a business because of their ease and flexibility. Making sure you understand and agree to the terms of the contract can help you avoid costly disagreements and disputes. That is the golden question. While there is no one-size-fits-all answer, there are some common characteristics that can help your business succeed. Key questions include: Get help from a lawyer who specializes in legal planning if you need it. No expensive hourly fees. No surprise prices. Starting a business is hard – don`t let anyone tell you otherwise. But if you`re meticulous in putting your legal checklist in order for getting started, you`ll save yourself serious headaches down the line.
Some of these things are things you can take care of yourself. But for more complicated tasks or if you encounter questions, it`s important to hire a knowledgeable lawyer to help you. Once you`ve sorted out all the legal headaches, make sure everyone in the company knows and understands your company`s legal obligations as well as you do – as a business owner, you could be held accountable for everything your employees do while you represent your organization. Learn more about business training and consulting from the Office of Women`s Business Ownership (OWBO). OWBO also helps women-owned small businesses with financial advice. Now that you understand why legal advice is so important, the next step is to find the right people who can help you and give you the right answers. There are many resources online, but some of them charge a lot of money or grant limited access. Fortunately, there are many free places on the internet where you can get solid legal advice from experts and professionals. A corporation is a separate entity under the law. The business structure can help protect the owners of the business – the shareholders of the corporation – from liability and help them reduce their taxes in certain circumstances.
Websites like FindLaw and Nolo publish information about business-related laws and offer a variety of resources, including articles, blog posts, videos, and even e-books on various legal topics. They also have searchable databases of lawyers practicing in specific areas of law, so you can find a business lawyer that suits your needs. These websites also provide information on specific topics such as labor law, intellectual property, and taxes for small businesses. For example, Nolo.com offers a free online course on the basics of business-related laws for small businesses, which you can complete at your own pace or learn more about by visiting their website. CALI is a computerized legal instruction written by law professors at CALI-sponsored educational institutions. You can use it to study several business law topics. The interactive tutorials in the CALI Law Library database can be used as lessons to read specific business law topics such as sale and leasing, secured transactions and negotiable instruments and other payment systems. Legal advice is a great place to start if the issue you want to discuss is not too complex. They`re also good if you need a good starting point for some core areas of your business. The more your business grows, the more complex its processes and laws become. b12q b q2As you probably know, «free lunches» are rare in life, and the time for a lawyer`s generosity will eventually run out (usually around the 30-minute consultation mark).
Intellectual property law is inherently complicated. If you want to protect your company`s intellectual property, consult a specialized lawyer who is familiar with the field, in addition to general legal advice for small businesses. A qualified IP lawyer can help you determine if your company has IP assets that warrant formal IP protection. If you can`t find answers to your search, contact your local economic development office or the nearest Small Business Development Centre (SBDC) for assistance. The owners of these websites understand that legal aid can be very expensive for small businesses, which is why they offer legal advice at little or no cost. Avoid common mistakes and seek advice from experienced small business owners who want to help. Local SBA partner organizations offer free access to mentors and trainers. 5. Capital.
Businesses must raise funds, keep records of income and distributions, and behave in a fiscally responsible manner. Different business units may require different procedures for raising and distributing capital. Ask business law questions, get advice in specific situations, have your business contracts reviewed by a lawyer and much more. The SEC has guidelines on what constitutes «reasonable efforts» with respect to these accounts. It is possible to raise funds outside the narrow boundaries of accredited investors, but it will open a Pandora`s box in terms of securities and compliance enforcement. So, if you want to be as legal as possible, go through accredited investors. This is a practical measure that many startups often overlook when they`re just starting out and can`t wait to get started. But it protects your business at every level and ensures a certain level of commitment that any founder or early employee brings.
In fact, you may face many legal challenges in the business world, including protecting your intellectual property (e.g., patents, trademarks, and copyrights), defending against lawsuits that could land you in court, and much more. It`s best to start with money in the bank. Many financial advisors also recommend that you «keep your day job for a while» if you can, so you don`t depend on the company to pay for personal expenses. You may also qualify for a small business loan to help pay for start-up costs.