As a small business owner, there are many things you need to keep track of to make your business successful. You need to focus on your products or services and how to best market them, but you also need to be aware of the legalities involved in owning and operating a business.
This blog post will discuss some of the most important things small business owners should know about their business and the legalities involved.
Here Are 3 Topics:
1. Entity Formation
One of the first things you need to do when starting a small business is to choose the right business entity. This decision will have tax and legal implications, so it is important to choose wisely. There are several different types of business entities, including sole proprietorships, partnerships, limited liability companies (LLCs), and corporations. Each type has its own advantages and disadvantages, so be sure to consult with an attorney or accountant before making your final decision.
Once you have selected your business entity, you will need to obtain the necessary licenses and permits from the government. Depending on your business type and location, this can involve a significant amount of paperwork. However, failure to obtain the proper permits can result in hefty fines, so it is important to make sure everything is in order before you open your doors for business.
As a small business owner, you will likely enter into many different types of contracts with suppliers, customers, employees, and other businesses. Therefore, it is important to have a basic understanding of contract law before signing any agreements.
A contract is a legally binding agreement between two or more parties and can be either written or oral. Each party to the contract must agree to certain terms and conditions, and once the contract is signed, they are legally obligated to uphold their end of the bargain. If one party breaches the contract, the other party may be entitled to damages.
It is also important to remember that not all contracts need to be in writing to be legally binding. An oral contract can be just as enforceable as a written one, though it may be more difficult to prove in court if there is a dispute. If you are ever unsure whether a contract is valid, it is always best to consult with Manfred Sternberg & Associates before moving forward.
Another important legal consideration for small business owners is trademarking. A trademark is a word, phrase, symbol, or design that identifies and distinguishes the source of goods or services. Trademarks can be registered with the United States Patent and Trademark Office (USPTO), which gives the owner exclusive rights to use the mark nationwide.
If you plan to use a trademark in your business, it is important to do a search to make sure it is not already in use by another company. You can do a search online through the USPTO website or hire an attorney or trademark specialist to do a comprehensive search. Once you have determined that the mark is available, you can file for registration. However, the registration process can be complex and time-consuming, so it is best to consult with an attorney before moving forward.
These are just a few of small business owners’ legal considerations they need to be aware of. While this list is not exhaustive, it should give you a good starting point as you navigate the legal landscape of starting and running a small business. Remember, if you ever have any questions or concerns, be sure to consult with an attorney to ensure.