There are a multitude of legal issues to think about when it comes to
starting your business.
Everything from your business name to its structure to
its operation has legal implications. What follows is a sampling of some of the
legal concerns you may want to address with your attorney before you start your
business.
Your Business Name
You will need to make sure that the business name you plan to use is
not already being used by another business. You can do this by doing a name
search with the appropriate state agency, which is usually the office of the
Secretary of State. If your chosen name is not already in use, you can reserve
it with the Secretary of State's office for a period of time, about 120 days,
while you prepare your articles of incorporation, articles of organization, or
a partnership agreement.
Your Business Structure
You will need to decide which business structure best suits your
business. Your business could be structured as a sole-proprietorship, partnership,
limited partnership, corporation, S-corporation, or limited liability company.
To decide what form is best, you will need to consider liability issues
associated with your business and which form will provide the best tax structure
for your business.
Business Licenses
Depending on what type of business you plan to engage in, you may need
a variety of licenses or permits. At a minimum, you will need a business
license and tax registration. Read the related article on licensing
requirements for more information.
Non-Disclosure Agreements
If you will be setting up financing for your business or entering into
contracts with suppliers, you should consider confidentiality and
non-disclosure agreements. Since these outside firms will have access to
business information that you may want to keep private, you should consider
having them sign these agreements. If you are ordering a thousand gizmos for
your grand opening, you don't want the supplier to call your competitor to see
if they want a thousand gizmos so that they can offer them on the same day. The
more confidential information your business plan contains, the more important
these agreements are.
Zoning
When you are selecting the location for your business, you will need to
make sure it is properly zoned for the type of business you plan to operate. It
is not okay to just assume that, if your business is of the same type as the
one that is currently there, the zoning is appropriate. Zoning may have changed
while the other business was operating, and that business might have been
provided an exemption that won't be provided to yours.
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