When you’re starting a business, there are a lot of legal issues to consider. You might think that the only question is if you want to incorporate or set up an LLC. However, there are many different kinds of corporations and business structures; they all have advantages and disadvantages depending on your needs as well as your startup’s stage of development.
You should also be aware that most federal laws don’t apply until your company starts making sales; so, if you’re just selling products at farmer’s markets or craft fairs this isn’t an issue right now! But once things start getting serious (and money starts coming in), then it’s time to get serious about protecting yourself legally.
Patent And Trademark Protection
Patents and trademarks are two types of intellectual property (IP) that can help protect your business. A patent is an exclusive right granted by the U.S. Patent and Trademark Office (USPTO) to an inventor or their assignee to make, use, sell, or import an invention in the United States for a limited period of time. To get a patent, you need to file an application with the USPTO describing your invention and how it works.
Then the USPTO will review your application to decide whether they think it’s new enough or useful enough that they should give you a patent on it–and if so, what type of protection they’ll give you: design patents last 14 years; utility patents last 20 years from when they’re issued; plant patents last 17 years from when they’re issued; provisional applications have 6 months from filing date before you must file non-provisional applications which costs more money but gives greater protection against infringement suits from other companies who might try using similar technology without permission–this means doing the research before filing so as not waste money unnecessarily!
Issues Involving Intellectual Property (Ip) Are Complex And Often Take A Long Time
Patent and trademark protection are complex, and they can take a long time to get. You should be aware that it’s not easy to protect your business through IP law. It takes an average of three years for an inventor or entrepreneur to get a patent, and even longer if you’re applying for international protection. And trademark applications are expensive–you may need $10,000-$15,000 just for one application!
If you’re thinking about going down this route with your business idea, consider hiring an attorney who specializes in intellectual property law (IP). This person will help ensure that you don’t miss any steps along the way so that when it comes time for someone else to infringe on what belongs exclusively within your company’s domain (and isn’t already public), there won’t be any surprises waiting for them behind closed doors
Business Formation And Entity Type
The first step in forming your business is deciding what type of entity you want it to be. The most common forms of business are corporations, LLCs, and sole proprietorships. Partnerships also exist but are less common compared with the other three types. Each has its own benefits and drawbacks that you should consider when deciding on an entity type for your new venture:
Corporation: A corporation can provide legal protection for shareholders (owners) against personal liability for debts or damages caused by the company’s actions–a feature called limited liability protection. This means that only the assets of the company itself are at risk; its owners’ personal assets cannot be seized by creditors if there is not enough money available within the corporation’s bank accounts or other assets such as equipment or inventory items worth more than what was borrowed from banks or investors who gave capital investments into start-up businesses like yours!
LLC (Limited Liability Company): An LLC offers similar protections against personal liability as well as pass-through taxation status which means profits/losses flow directly onto 1040 tax forms without being taxed twice like C corporations would normally get hit twice due to both federal income taxes plus state withholding taxes too – so double check those numbers carefully before filing anything away!
Non-Compete Agreements
Non-compete agreements are an important part of any business. They help protect the intellectual property you’ve invested in and keep competitors from stealing your ideas.
In a nutshell, non-compete agreements prevent employees from working for a competing company after leaving their current job. They can also be used to prevent employees from starting up their own businesses within a certain radius of yours–for example, if you run an ice cream shop on Main Street and want to make sure no one else opens up another ice cream shop across town before they’ve had time to establish themselves (or vice versa).
The good news is that there are plenty of resources available online that explain how exactly these agreements work: how they’re structured when they’re necessary, what kind of clauses should be included in them (and why). You can also get advice about which states allow non-competes at all; some states restrict or ban them altogether because they feel like people should have more freedom when it comes down to where they choose work after leaving one job versus another.*
Shareholder Agreements/Capitalization Structures
In order to protect your business, it’s important to understand the different types of capitalization structures and how they can impact your company.
Shareholder agreements: A shareholder agreement is a contract between two or more shareholders that outlines how they will operate their business together. It may include provisions related to how decisions are made, what happens if one shareholder wants to leave the company, etc. The benefit of this structure is that it allows all parties involved in a startup venture (e.g., founders) equal rights when it comes time for major decisions about the direction and future growth of their enterprise; however, there are also drawbacks such as increased legal costs associated with drafting such an agreement up front as well as ongoing maintenance costs associated with maintaining this type of document throughout its lifespan.*
Capitalization structures: There are several different types of capitalization structures used by companies today–from sole proprietorships all the way up through corporations (publicly traded companies)–but each has its own benefits/drawbacks depending on what kind of entrepreneur you’re looking for them too help manage risk within their respective industries.”
Employment Law Compliance For Employees, Contractors, And Independent Contractors
When you hire a worker, there are many factors to consider. Are they an employee or contractors? What are the tax implications of each? How do you determine if someone is an employee or contractor?
To classify workers as employees or contractors:
- Ask yourself what the nature of your relationship with the worker is. If it’s clear that they’re performing tasks for your business under their own direction and control, then they should be considered an independent contractor.
- Be sure not to misclassify contingent workers (temporary employees) as regular full-time staff members because this could result in higher labor costs down the road when overtime pay kicks in for everyone else on staff!
You Can Start Small And Work Your Way Up To More Complicated Issues
If you’re just starting out and don’t know much about legal issues, it’s best to start with the basics. Don’t be afraid to ask for help, and if you don’t know where to begin, talk to an attorney who can guide you through the process of protecting your business.
It’s also important not to be intimidated by more complicated legal situations–if something feels unclear or confusing, don’t hesitate! Asking questions is key to understanding how these issues affect your business (and what kind of action needs taken).
Conclusion
If you’re feeling overwhelmed, don’t worry. You can start small and work your way up to more complicated issues. For example, if you have a simple business idea that doesn’t involve any intellectual property assets or employees, then it might make sense to just create an LLC or corporation right away without worrying about whether it’s the best type of entity for your needs–which will save time and money on attorney fees. However, if you want to protect yourself from potential lawsuits over patents or trademarks (or are concerned about how employees will be treated), then you should probably seek out legal help sooner rather than later!
