A Brief Legal Advice for Entrepreneur

business law

Launching a business requires a firm knowledge of the basics of law. And if you think that the importance of law stops there, then you are mistaken. Many aspects of business, such as taxation, insurance for the employees, intellectual property, and company formation are all within the state’s law.

Inadequate knowledge of law may open the risks of misconduct and violation, which can be costly and even fatal to the company’s reputation. But here, you can find the summed-up version of the basics of law for business. Read this article through, and the knowledge will protect you.

On Choosing the Entity Structure

There are many types of business, such as Public Limited Company (PLC), Private Company Limited by Shares (LTD), Unlimited Company (Unltd), and Limited Liability Partnership (LLP). The government acknowledges those entities by granting them the articles of incorporation or corporate charter. The documents serve as a legal license for a business to take place in a country. It will receive all the legal protection and responsibility that have been determined by the state law.

The best way to work on the corporate charter is by working with a corporate law firm. You tell them how you are going to do your business, which includes the funding, profit share, and employment. Then the attorney will give his/her best knowledge of what corporate structure fits the best with your plan. Corporate attorneys are also expert in taxation so that they can help you to improve your financial plan further.

On the Financing

returning the budgetCorporate funding and shares are all predetermined during the establishment stage. What the corporate attorney does at that stage is to design:

  1. The term sheet
  2. Stock purchase agreement
  3. Subscription terms
  4. Nondisclosure agreement for investors
  5. Purchase agreement.

If all are carefully written, in theory, the company will be legally strong. But faults grow exponentially over time. Agreements need audit and renewal. Some points may get irrelevant in the future. And some terms may not be compatible with the company’s structure anymore. In those cases, you have no one to rely on except the corporate law firms.

On the Employment Documents

waiting for applicantsThe Human Resources Department (HRD) of a company is the one in charge of issuing the employment documents. The agreements must meet the standards of the local employment law. And this matter may require a lawyer’s supervision.

Salary structures, compensation, benefits, off time, exit policies and performance parameter are all subjects that the employment documents must cover. A competent HRD officer possesses the knowledge of the rules that must not be violated. And that is why you may, or you may not need assistance from a lawyer.

You need to realize that you must control the efficiency of the employment documents even after they have been issued. Disgruntling employees usually appear when the exit policy is implemented. Take one case and try to conduct everything by the book, and see whether things go smoothly. If you encounter trouble, and your suitor finds a flaw in your system, then you must fix it immediately. Otherwise, the dispute may inspire other workers to grow unrest even if the company treats them fairly.

On the Partnership

potential colleague turned investorMaking deals between companies need a legal advisor. But before that, you can minimize the cost by being extra careful in choosing a partner. First, always check whether your potential client is legally registered.

Today’s technology has facilitated us with search engines that can help us to find many kinds of information, including business entity. For instance, if you are a businessperson from California, you can try California Secretary Of State Business Search to profile your potential colleague.

Second, consult your decision with the company’s financial advisor. Advisors have a wide perspective on an issue because their job is to keep updated with the current news. A good advisor evaluates the situation based on the real fact. If a company is suspected to be corrupted and dying from the inside, a good advisor will not glorify the condition.…

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Business Laws for Entrepreneurs

professional

Nowadays a lot of people decides to ditch the 9 to 5 lifestyle and decides to open up a business, be it selling services or products. Although selling your services or products to your clients might sound interesting, you might want to start your business as soon as possible. But opening up a business can be quite a task, as there are so many things to take care especially the business laws that you have to know and abide. In this article we’re going to discuss some business laws for entrepreneurs, are you one? If so, make sure to read this article to find out more about it.

Business licensing

The first step as you try to establish your business is that you’re going to need a business license. Start by researching the internet, try to find out if your company needs any licensing, if it’s an online business then chances are you won’t need them. Federal and state permitting can be checked through business administration website so make sure to check your business if it requires any licensing or not, doing this steps will avoid you any penalty or fine.

Know the taxes that you have to pay

checklist
Although having a business means that you have a massive income potential compared to working in an office, it doesn’t mean that you’re free from taxes. Federal tax, social security, Medicare and federal unemployment tax needs to be reviewed and ensured to fit the requirements. Dealing with taxes can be quite a hassle, since there’s a lot of forms to read and to fill, and often you can overlook some necessary documents, in this case, we suggest that you invest in hiring a personal accountant, as they can help you with your business taxes.

Put a patent to your business

business
If your business has a product that is considered an innovation in the market, you might want to protect your intellectual property with a license. Not just products, you can also protect your business name, symbols, designs, and even musical pieces with a trademark. Although establishing a patent on your business might cost you a lot, and it can be quite a long and complicated process, it will be worthwhile in the long run for your business.

Tip: in case of stolen or damaging of your intellectual property, consider getting a lawyer to sue the one who took or modify your intellectual property without any permission.…

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