When you take the decision to begin any new business venture, though they may seem time-consuming and often purely confusing, there are a couple of legal decisions that you would do well to get out of the way before commencing with all types of business operation.
If you wish to trade successfully and avoid possibilities of legal issues and indeed legal fees, these are the legal decisions that you need to address straight away:
- The Legal Formation of Your Company
Whether you plan to be a limited company, a PLC, an LLC or a Partnership, your entity formation is crucial as it can work on protecting those assets you may have or subsequently build up, preventing them from becoming liabilities in the long run.
Look at the structure of your set up and decide what formation would best suit your business needs and then form your entity as soon as possible.
- The Type of Ownership in Your Company
If you have several founders in the company, the issue of equity will undoubtedly arise, so paying attention to it at the formation stage is highly recommended. Decide on how you’re going to allocate capital, that is on what basis, and draw it up into a contract. This way any clauses are clearly stated and any timescales that need incorporating can be done so at this point in time.
- The Type of Product Protection in Your Company
Ultimately there are many laws that your business will have to adhere to over the course of its lifetime and understanding what is most likely to affect you to begin with will stand you in good stead to deal with them when required. Look at getting the relevant patents and assigning all property to the company name as soon as you’ve formed.