Starting your own company can be very exciting. Perhaps it’s something you’ve dreamt of for years, and it’s now come to fruition.
While getting to this step is a huge achievement, the work doesn’t end there. If your intention is for the business to expand eventually, then there are several legal factors that you need to keep in mind.
The legal structure of the company
Choosing the appropriate entity for your business is important. There are several ways that you can go. Some small business owners opt for a sole proprietorship. However, this structure is not necessarily suitable for large scale business or companies that wish to expand quickly.
A more suitable entity type could be a limited liability company (LLC). This is a structure that allows new investors to come on board, and it also protects you personally from legal liability. For instance, if the business ends up owing money, your personal assets cannot be pursued by creditors.
The right contracts
Contracts are at the heart of every business transaction and professional relationship. At least, they should be.
If you have a business partner, then you should both be protected by a partnership agreement. Also, employment contracts can protect both your rights and those of your workers. Your clients should also be given contracts that not only ensure they receive the goods and services promised but that you are paid appropriately.
Does your business sell goods? If so, you may need a warehouse. Even if you don’t sell goods, you may need a company headquarters to operate out of. Can you take on the financial burden of buying a building outright? Would a commercial lease be more suitable? You’re going to want to make sure that all of the legal aspects of any commercial real estate deal are above board.
These are just some of the key legal factors to take into account as a business owner. It will help you to have experienced legal guidance.