Perspectives

Set Your Small Business Up for Success: 10 Legal Steps

Business Law , Intellectual Property , WFJ Business Services WFJ Law Firm

When starting a small business, addressing legal considerations early on can help lay a solid foundation and avoid costly mistakes. Here are 10 key things to consider, do, or impliment:

Choose the Right Business Structure

  • Decide on the legal entity (e.g., sole proprietorship, partnership, LLC, corporation)
  • Consider liability protection, tax implications, and administrative responsibilities

Register Your Business

  • Register your business name with your state and/or county
  • File necessary paperwork to establish your business legally

Obtain Necessary Licenses and Permits

  • Research and apply for local, state, and federal licenses or permits required for your industry
  • Esure compliance with zoning laws

Understand Employment Laws

  • If hiring employees, comply with wage and hour laws, anti-discrimination laws, and workplace safety requirements
  • Have clear employe policies and an employee handbook

Draft and Review Contracts

  • Use clear, enforceable contracts with customer, suppliers, and partners
  • Include terms addressing payment, termination, liability, and dispute resolution

Protect Intellectual Property

  • Trademark your business name and logo if necessary
  • Consider copyright protections for original content and patents for inventions

Develop a Risk Management Plan

  • Obtain appropriate insurance (e.g., general liability, property, worker’s compensation, errors and omissions)
  • Limit liability through indemnity clauses in contracts

Comply with Tax Obligations

  • Apply for an Employer Identification Number (EIN) with the IRS
  • Understand and file required federal, state, and local taxes, including sales tax if applicable

Establish Clear Financial Practices

  • Seperate personal and business finances by opening a business bank account
  • Maintain accurate financial records for tax and compliance purposes

Stay Current with Legal and Regulatory Changes

  • Monitor laws and regulations affecting your industry
  • Parnter with a legal professional or compliance partner to ensure ongoing compliance

By proactively addressing these areas, small businesses can reduce risks, remian complant, and set themselves up for long-term success. To learn more about WFJ’s business consulting services, get connected with one of our attorneys today. 

 

 

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