Top Legal Factors to Consider When Forming a Business
Starting a business is an exciting time for any entrepreneur. Still, it is essential to ensure you are taking all the necessary legal steps to protect your business and avoid potential legal issues. As a new business owner, it can be challenging to navigate the complex world of business law. There are several things to consider when forming a business, from contracts to licenses and more.
Business Structure
Choosing the appropriate business structure is one of the first legal decisions you must make when starting a business. Several options exist, such as sole proprietorship, partnership, limited liability company (LLC), and corporation. Each structure has its unique advantages and disadvantages, and choosing the one that aligns with your business’s goals, needs, and long-term growth plans is essential.
Licenses and Permits
Depending on your business activities, you may need various licenses and permits. Every industry has specific regulations, and it is essential to comply with them to avoid fines or legal issues. Check with the federal, state, and local governments to determine what licenses and permits your business needs. Failure to do so can lead to penalties, suspension of operations, or even legal action.
Contracts
Contracts are legally binding agreements between you and another party, whether an employee, supplier, vendor, or client. A well-drafted contract protects your business and ensures that every party upholds their obligations. They should include specific terms and conditions, payment terms, warranties, and other essentials based on your industry and the parties involved.
Intellectual Property
Your business’s intellectual property is one of your most valuable assets. It includes trademarks, patents, copyrights, and trade secrets. Protecting your intellectual property is crucial to ensure your brand’s identity and prevent others from using it without your permission.
Employment Laws
The employment laws that govern your business can be complicated, and failure to comply can lead to legal issues or costly fines. Some employment laws include wages, benefits, harassment, discrimination, safety, and termination. It is essential to know your obligations as an employer before you hire your first employee and comply with all federal, state, and local employment laws.
Taxes
Every business is required to pay taxes. Tax laws can be complex and different for each business structure. You should comply with all applicable federal, state, and local tax laws. This includes obtaining a tax identification number, filing taxes timely, and keeping proper financial records. Not complying with tax laws can lead to penalties, interest, and legal sanctions against your business.
Annapolis Business Lawyers at Oliveri & Larsen Support You When Creating a Business
Starting a new business is exciting but can also be overwhelming. To help you navigate this process, speak with our Annapolis business lawyers at Oliveri & Larsen. Complete our online form or call us at 410-295-3000 to schedule a consultation. Located in Annapolis, Maryland, we serve clients in Ocean City, Anne Arundel County, Baltimore County, Baltimore City, Calvert County, Harford County, Howard County, Queen Anne’s County, St. Mary’s County, Worcester County, Kent County, and the upper and lower Eastern Shores of Maryland.