• Carmen Zajicek

How Can You Make Your New Business Legally-Sound?

As an entrepreneur, your goal should always to think about what’s next for the business. Is it a new product line, a new retail outlet, or market expansion? No matter what you do, make sure the business is legally sound.

Here’s how you can do so:

Appointing a legal advisor

If you're new to the business world and don't know much about the regulatory framework that you have to comply with, it's better to have a legal professional on board. Not only will they look after your company's legal matters but also advise you before you set up the business. They'll tell you about the laws that apply to your business and the activities that you can carry out within the framework of those laws. The legal advisor will also suggest the kind of an entity that you should set up and what insurance and taxation policies would apply in that case.

Brand protection

This might not sound too important if your business is still in the startup phase but will be necessary for the long run. As you move up the business life cycle ladder, you'll realize that your brand is one of your most valued assets and needs to be protected accordingly. The brand helps your customers identify your product and reflects your business's reputation and goodwill.

If you want to protect your brand from being misused by third parties, we recommend protecting it from the beginning. The easiest way to protect your brand from weakening is to get a registered trademark. You can get a trademark for the most distinctive feature of your brand. It could be the brand name, tagline, or the logo.

Form a legal entity

When you form a business, you need to decide whether you're aiming to create a:

a. Sole proprietorship

b. Partnership

c. Private/Public company

d. Limited liability protection

If these legal jargon aren't making much sense to you, it's okay. A well-qualified attorney will guide you regarding the suitable type of entity based on your business idea. This decision should be left to the experts since it affects your cost of establishment, future investments, personal legal liability, and tax implications.

In most cases, business owners opt for limited liability company which incorporates some features from both traditional corporations and partnerships. This type has a perpetual existence and offers greater liability protection than your personal ownership.

If you're based in Houston, Austin, San Antonio, and need help with setting up your LLC, get in touch with us. Our team of highly qualified attorneys will set up your LLC for only $250. Here are the details.

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Mike Massey JD, MBA, MPA just might be the 195th most interesting person in Texas. He has 4 college degrees and he's working on a 5th:  BBS Accounting; MPA Master's in Professional Accounting; JD Law Degree; MBA Master's in Business Administration; BBS in Biblical Studies (in progress).

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