Starting your own company is a bold move, but you’ve carefully planned it for several years. Your idea has been developed, and you’ve identified your team and your potential customers.
Many startup companies make some crucial errors in terms of legal provisions, and these are mistakes that you want to avoid. Outlined below are some crucial factors to consider.
What structure will your company take?
There are numerous legal structures that your company can take. If you’re going it alone for a start, then you may consider a sole proprietorship. The downside of this is that you can be held liable personally if anything goes wrong, meaning that your personal finances and property could be at risk.
Before launching your company, it’s important to find a structure that suits your business model. This can help ensure that you avoid legal issues early on in the process.
Your intellectual property
You have a company name in mind as well as designs for your branding. Firstly, you’re going to want to check that these are available for use. If another company is operating under the same name, or a similar name, then they might challenge you. The same applies to your style of branding, logos and so on. One you have established that these are free to use, you want to take steps to protect them so that rivals cannot copy and benefit from your innovations.
It’s vital to protect your business legally. Seeking guidance from someone with knowledge of business law will help ensure that your startup gets off on the right footing.