Starting your own business can be the key to financial success and working every day in an environment that you enjoy. With that being said, building your own business is by no means easy, and many startups don’t make it.
However, by taking the appropriate legal steps initially you can set yourself up for success. Here are some important legal steps that every startup should take.
1. Choosing the right name
You may have had a company name in mind for some time. Nonetheless, it is not necessarily as simple as using that name right away. Firstly, it’s important to check that no other company has trademarked the name you intend to use. If you start trading under a trademarked name, you could find yourself facing legal challenges as soon as you get started.
After conducting due diligence, if your chosen name is available, it’s important to think about registering it as a trademark. This protects your brand and ensures that no one else can use the name that your company will be built on.
2. Choosing the right structure
There are several different business structures than you can choose from. If your business is small scale and is only intended to be a side project, then you may consider operating as a sole proprietorship. This means that you can start trading quickly and from your own personal accounts. The drawback of this is that if anything goes wrong, such as getting into debt or facing legal challenges, you could be personally liable.
For the reasons discussed above, many business owners opt for a Limited Liability Company (LLC). As the name suggests, your personal liability is limited with an LLC. Trading will be done through business accounts and any potential liabilities will be on the company rather than you personally.
These are just two essential steps to take as a startup company. There are several other legal aspects to consider, which is why it’s so important to seek guidance while establishing your business.
