With so many things to do as a new business owner, how can you keep track of it all? In this post, you’ll learn how to get a handle on the most important legal tasks, so you and your business can keep taking the world by storm.1. PICK A NAME YOU LOVE
Since your name is the first thing customers will see, quite a lot—it's very important to take the
time and make it memorable. Once you’ve choosen the right name, try to see if anyone else has staked their claim. Begin your search by combing through the Patent & Trademark Office’s trademark database, checking to see if there are variations along the way. If your name isn’t registered there, go ahead and apply for a trademark. If you’re planning on incorporating your business, don’t forget to contact your state filing office to see if there are any other companies conducting business under the name you want.
2. CHOOSE YOUR BUSINESS ENTITY
Picking the right entity type is an important step to starting your business, because it affects how
you’re taxed and what you’re personally responsible for. There are lot of variables to think about here. For example, if you’re the only person in your company and don’t plan on expanding, it might make sense to just remain a sole proprietorship. But if you have a team, more than one owner, or want the ability to sell stock, you’ll have to choose a different structure. Do some research upfront, and then talk to a licensed legal professional to help you make the final call.
3. GET YOUR LICENSE
To start, find your state on the Small Business Association website of your country to see what types
of permits and licenses are needed to legally operate in your city, county, and state. Some areas require you to have a license as soon as you open up shop, so make sure you know the exact time frame you have. Then, once you’ve received the appropriate documents, be sure to properly display them in your business.
4. SET UP A BUSINESS BANK ACCOUNT
As you chip away at building your company, do whatever you can to avert financial headaches down the road. Opening up a specific business bank account will prevent your personal funds from getting mixed in with your company expenses.
Generally, local banks and credit unions are perfect fits for small businesses. The documents you’ll need to bring to the bank depend on the type of entity you are, but most likely, you’ll need your tax ID number and any documentation that has your official business name printed on it.
5. PUT TOGETHER A FOUNDERS’ AGREEMENT
When starting a business with others, it’s super important that everyone is on the same page right from the start. A founders’ agreement will protect all parties involved by spelling out all the complex parts before any issues arise. Your agreement should have a clear explanation of all responsibilities, compensation, equity ownership, intellectual property, and vesting terms. An agreement won’t foreshadow impending doom—it’s just there to protect you and your business if everything doesn’t go according to plan. And in the business world,
that’s usually how things go.
6. GET YOUR CONTRACTS IN PLACE
This could be in the form of a non-disclosure agreement for a vendor, or a client contract that explains the service you’ll be providing. While working with contractors, it’s particularly important to draw up a legal contract that details the specific terms of your working relationship. Contracts will keep everyone accountable and prevent messy legal entanglements down the line.
7. STICK A PRIVACY POLICY ON YOUR WEBSITE
When you launch your website, you need to make sure you have a privacy policy that describes the exact data you’re collecting from visitors. The data you’re collecting may be in the form of email addresses, names, credit card information, and other personal details you’re using to conduct business.
Some of the tasks above might look daunting, but once you dive in, you’ll start to see just how manageable they really are. And each time you knock an item off your list, you’ll bring yourself one step closer to becoming completely unstoppable.