Imagine after years of planning, saving and building capital, you are finally ready to take the leap and start your own business. Unfortunately, starting a business is not as easy as turning on the lights and hanging an “open” sign in the door. There is a seemingly endless number of details that go into opening a business. For example, even choosing the name of the company could involve filling out an application and paying a fee.
In addition, there are various legal issues that you must consider as you are starting a business. Here are few things every entrepreneur should think about when creating a new business.
Trademarks
One of the reasons why choosing a company name can cause a problem is due to the legal issues surrounding trademarks. For instance, if you select a business name that is too close to another existing company’s, you could end up in court battling over trademark infringement. This is why you should take the time to research company names and choose one that is as unique as possible.
Intellectual property
Another issue that could cause you headaches down the road is intellectual property. In general, intellectual property includes trademarks, patents and copyrights. To protect your proprietary intellectual property, be sure to follow the proper legal channels in order to ensure that someone else can’t steal your ideas.
Business structure
Another important factor to consider is the structure of your business. For instance, are you planning to be the sole owner? If so, a sole proprietorship could be your best option. Or, do you intend to start the business with a partner? If this is the case, the two of you may want to form a partnership. Other options include a corporation or s-corporation structure. When choosing an entity type, take the time to consider things like your management style, the goals of the company and the tax consequences.
If you are planning to open your first business, it is important to consider various legal issues. By overlooking the legal details, you could end up having to close the doors of your business before you ever really get started. To protect your new venture, take the time to investigate not only New York’s requirements for starting a company, but what you need to do to ensure your ideas are safe and the entity is structured in a way that benefits you and your goals.