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What legal steps should I take before starting a business?

Picture of Chris Battis By   ·  1 minute read

As a lawyer, I would advise any individual looking to start a business to take the following legal steps:

  1. Choose the appropriate business structure: The first step would be to choose an appropriate legal structure for your business. This could be a sole proprietorship, partnership, limited liability company (LLC), or a corporation. Each of these legal structures has its own set of advantages and disadvantages, which you should understand before choosing the one that best suits your business needs.
  2. Register the business: Once you have chosen a legal structure, you will need to register your business with the appropriate authorities. This may involve obtaining a business license, registering for taxes, and obtaining any necessary permits. Failure to comply with the registration requirements could result in penalties and fines.
  3. Protect your intellectual property: If your business idea involves a unique product or service, it is important to protect your intellectual property. You may need to file patents, trademarks, or copyrights to protect your product or service from infringement.
  4. Obtain necessary insurance: You should consider obtaining liability insurance to protect your business from any legal claims that may arise. Depending on the nature of your business, you may also need other types of insurance such as property insurance, workers' compensation insurance, or business interruption insurance.
  5. Create legal agreements: Once your business is established, you will need to create legal agreements with your partners, investors, employees, and customers. This may include partnership agreements, employment contracts, non-disclosure agreements, and service agreements.
  6. Comply with labor laws: As an employer, you will need to comply with labor laws, including minimum wage laws, overtime laws, and anti-discrimination laws. You may also need to provide certain benefits to employees, such as health insurance or retirement plans.

In summary, starting a business involves several legal steps that should be taken to ensure compliance with relevant laws and regulations. It is important to seek professional advice from a licensed attorney who can provide guidance on legal issues specific to your business.