Setting up a business is one of the most tedious parts of every entity. You can be excited that sometimes you forget to consider some first steps, mostly those that need legal backings.
If you’re starting a new business or have started a one, take time to review certain legal issues to protect your company in the long term.
Incorporate Early
There are many advantages to setting up your company. Some business owners see it as the first step in opening their enterprise. But others don’t think about the advantages of incorporation until it’s too late. Most times, small business owners lost a corporate name and logo to others.
Get a Business License as quickly as possible
Quickly get a business license and mingle with those in your line of business. Get local, state, or federal regulations as applicable to your business. Operating a business without a license can be expensive—there may be costly fines.
Prepare Contracts, Including a Non-Disclosure Agreement
Even if you do most of the work yourself, eventually you’ll probably hire some help or subcontract some work. Make sure you’re ready when that situation arises by having standard contracts prepared ahead of time. Your contracts should state the basic terms of the job and the payment details. You can talk to some business lawyers or a lawyer friend to help you put some perspective on this.
Protect Your Logo
A logo is more than just a graphic image—it’s a unique part of your company’s identity. As your business grows, your logo grows in value because it represents your company’s promise to your customers. Make sure you build that value for your own business and not someone else’s. If you don’t legally protect your logo, a competitor can use it to gain business that you earned.
Also, make sure the contract you enter with your graphic designer specifies that you will own the rights to the logo and will be entitled to trademark it.
Get an Employer tax records
It’s a good idea to obtain tax records. It will help you get some business deals and contract from government agencies and some big companies. It shows you are running a serious business and not some portfolio entities.
