Starting a small business can be an exciting and rewarding experience. However, it is important to understand the legal implications that come with running a business in order to ensure its success.

Here are five key legal issues to consider:

Understand Your Business Formation Options

A business can be set-up in several different ways–as a sole proprietorship, partnership, LLC or corporation. Each may have different tax benefits or provide varying degrees of liabilityprotection and legal protection in the event of bankruptcy. You need to determine which one is right for you.

Follow Regulations Relating to Taxes and Licenses

Make sure you understand all applicable taxes and licensing regulations that apply to your business.  Business owners must be aware of local, state, and federal taxes they may need to pay and any permits or licenses that are required for their specific type of business.

Protect Your Intellectual Property Rights

If you’re creating something unique, make sure you have the right protections in place to protect it from being copied or stolen. This can also help to foster innovation and creativity within your organization, and make sure your company’s ideas remain exclusive, secure and profitable.  

Have An Exit Strategy In Place

Planning an exit strategy before starting a business is essential to ensure that both losses and profits are minimized. It is important to consider all potential scenarios and create an action plan that is tailored to the company’s particular needs, such as creating a buy/sell agreement with co-owners or transferring ownership of assets.

An expert in business law can be invaluable when navigating the legal side of running a small business.  Contact us at Harkavy Shainberg Kaplan, and we’ll help you avoid costly mistakes, protect the company’s assets and ensure success in the long run.