If you're going to own a business that means something and makes money, you will have several types of legal considerations before you open your doors or launch your campaigns. This article covers nine points to ponder that bring success for the long-term...
Before you begin, make these legal considerations in the workplace - your workplace.
Starting a business can mean finally following your dreams and doing something you’ve always wanted to do. It can mean:
- Pursuing your passion
- Finding joy in the work you do each day
- Being in charge of your own schedule
Becoming your own boss can be an extremely exciting prospect, but there are some aspects that need thorough vetting before you decide whether it is the right move to make. With that in mind, here are nine legal considerations to make before starting your business.
1. Employment Law
If you intend on hiring staff for your business, whether now or in the future, you must familiarize yourself with employment law. Hiring an experienced human resources consultant can help you to come up with job descriptions and terms of employment.
When dealing with staff members, it’s so important to prioritize equal treatment, treating them legally and fairly in all situations. Failing to do this may result in a bad reputation of your company and even bring your business subject to expensive court cases.
2. Health And Safety
Health and safety legislation has been tightened over the years, so it’s more important now more than ever to ensure this is covered in your business strategy. Your premises should be safe. Testing and certification should be carried out as required.
Hazards must be taken into consideration and dealt with too, as you could be liable for any injuries or environmental infractions if appropriate education is not extended and regulations not trained and updated.
3. Legislation Specific To The Industry
Some legislation will only apply to certain businesses. You need to comply with any local and industry-specific legislation. Educating your staff of any changes is also key to your ongoing success, as suggested above.
4. The Legal Structure Of Your Business
The legal structure of your business is one of the most important decisions you’ll make. This will affect how you run your business, as well as how you pay your taxes and keep your accounts.
For instance, you could choose:
- Corporation
- Limited partnership
- LLC
Consider all of the liability issues that could potentially come to light with your company. Be sure to examine the type of tax structure that will be best for your business type.
5. Trademark
Always do a thorough search online before you decide on your business’s official name. You need to know if there are any businesses out there operating under a similar name. In turn, you don’t want to infringe on another company’s trademark.
When you’ve decided on the official name, you should register this with your logo as a trademark. This means that others won’t be able to register under the same name.
6. Legal Considerations And Zoning Laws
Zoning laws refer to the types of activities allowed within a certain area or district within a municipality. You’ll need to consider the area where you plan on having a shop or an office.
The area must be zoned for the type of business you want to start. Doing your research and inquiring with local government bodies will ensure there’s no confusion.
Assuming your zoning is appropriate could cause big problems in the long-term. Always check - even if there are similar businesses nearby.
7. Insurance
Most businesses need insurance, but the type depends on your business operations and whether you have employees. You don’t want to leave yourself vulnerable to compensation claims.
Look into options such as liability insurance and professional indemnity.
8. Confidentiality/Non-Disclosure Agreements
Having the right agreements is important if you’re planning on working with a bank or other partners for business finances. These parties will have access to business information that you probably want to keep private. So preparing appropriate agreements and making sure they are signed will help protect your venture.
A trusted firm can help you every step of the way, and using things like matter management software can ensure legal matters and related data are tracked accurately.
9. Ethical And Legal Considerations Regarding Contracts
Getting your business up and running takes a lot of patience. You may need to wear multiple hats. Whenever you’re dealing with contracts you should have a trusted lawyer by your side to check any document you would eventually sign.
An attorney can review contracts with a fine tooth comb, and help you fully understand the terms of any potential agreement. You may also find it helpful to have one with a defined relationship to talk you through legal consideration relating to non-payment and business insolvency.
While you don’t want to prepare for the worst and get into that mindset, you should still have a 'Plan B' in place. Hoping for the best but planning for the worst is usually your best way forward.
