After months, possibly years, of planning, you feel ready to start your business. Before putting your plan into action, do you know which considerations protect your company?
Inc. explores various legal facets of becoming a business owner. Learn proactive measures for protecting your company.
Written agreements
If you feel a partner could help you reach your business potential, draft an agreement. Written business partner agreements help manage dispute fallout. A well-written agreement may also save you the cost of litigation if a disagreement escalates.
Trademarks
Once you choose the perfect name for your business, perform a trademark search. You do not want to risk another company coming after you and accusing you of stealing its name. If that happens and the other party has grounds for a case, you may have to either pay legal damages or face a lawsuit.
Classifying workers
Do you think you need employees to take care of your customers or clients? Properly classify workers as standard employees or independent contractors. Employee classification determines whether you pay taxes and how much say you have in how a person performs work for you. Turn to the IRS for help with classifying your workforce properly.
Recordkeeping and documentation
From day one, develop reliable and effective recordkeeping and documentation strategies. Maintaining excellent records and working with a certified public accountant or another financial professional keeps you on the right side of the law. Good organization habits also pay off if you want to work with investors or attract buyers.
The above insights could help your business grow and fulfill its potential. Leave no stone unturned for protecting your company.