Michael Wiener, Albuquerque New Mexico Entrepreneur, Shares 10 Important Legal Tips All Entrepreneurs Should Know
Starting your own business entails more than just taking an ingenious idea and making a profit from it. A smart entrepreneur will want to ensure their ideas and business is covered under the law to prevent any issues and reduce liability as much as possible. Going the extra mile in diligence can help prevent the vulnerability of larger corporations taking control or attempting to undermine your business.
- Select the Right Business Structure
While the most straightforward business to start may be a sole proprietorship, take into account any personal assets you may want to protect. Creating a business structure under a limited liability company (LLC) or a corporation separates business assets from your assets. If someone were to go after the company, they can only pursue the business capital and not you personally. LLCs and corporations may also provide certain tax benefits that you should discuss with your CPA..
- Buy-sell Agreement
If your business is registered as a partnership, a buy-sell agreement is crucial for determining the future of the company in the event someone is no longer able to work or wishes to leave the business.
It is especially essential to CYA (cover your assets). More and more people are willing to sue these days or go after your business if they aren’t happy with the product or service results. Having insurance on the company can also help limit your liability.
- Legal Documentation
While business structures such as a sole proprietorship require minimal documentation to operate, structures such as limited liability companies or corporations require specific legal documentation to keep the business in good standing. Documentation may include registration with the secretary of state, confidentiality statements, non-compete clauses, and vendor contracts.
- Get Everything in Writing
Regardless of who you are working with, make sure to get all agreements in writing. This goes for employees, vendors, contractors, and customers.
- Familiarize Yourself with Employment Law
Depending on what type of workers you intend to hire, make sure you and your business are familiar with laws differentiating between contractors and employees. A slip up in differences can cause both legal and tax implications.
- Employment Agreements
Employment agreements can help protect your business by preventing employees from taking any proprietary information to another firm or competition. These agreements may include privacy statements or non-compete clauses.
- Be Aware of Intellectual Property
As most startups tend to be created off new ideas, it is essential to make sure the intellectual property of your business is protected so others cannot replicate your business. You may want to be thorough in your research to make sure your business plans do not breach the intellectual property of others.
- Legal Disclaimers
- Seek Professional Guidance from Legal experts
While you may feel confident that you can be successful on your own, experienced legal professionals can help identify areas of concern and share best practices to help prevent any roadblocks as your business grows.
About Michael Wiener
Michael Wiener of Albuquerque New Mexico is a renowned expert in the field of automobile license plates and motor vehicle licensing systems. He is a highly devoted professional, spent over 25 years as a New Mexico Licensed Real Estate broker, TV personality, entrepreneur, and license plate collector with a passion for world traveling.