Startups come and startups go. More than ever,
the startup environment is volatile, fast-paced and extremely competitive.
Managing a successful startup takes a combination of many skills, from
marketing and PR to bookkeeping and employee management. One of the most critical areas to consider when launching your startup is potential legal concerns. These 10 insights offer ways to help improve the stability of your startup and avoid complications in the process.
1. Conduct
Due Trademark Research to Avoid Branding Concerns
Though changing a business name or branded image
is possible, it could render all of your existing work useless. Research before
you get started and work towards securing trademarks as you start your business
for optimal protection.
2. Obtain
Legal Counsel Early
Obtaining legal counsel as a startup allows
you to not only ensure you are ready for any issues, but also allows your
lawyer to grow with the business and understand your potential concerns with
greater depth.
3. Brush
Up on Startup-related Taxes
From write-offs and quarterly payments to how
to claim various sources of income, it is often best to find an accountant for
your startup. If you are experienced in tax law and other financial matters, a
one-time consultation will ensure that you are on the right track.
4.
Separate Startup and Personal Assets to Increase Protection
Mixing assets nullifies many of the benefits
of declaring your business entity. By merging assets, you open yourself as a
potential target for litigation and other issues.
5. Draft
Contracts, NDAs and Other Forms to Improve Security
Having forms pre-drafted and proofed before
they are needed ensures that you are ready for any situation. Maintain your
documents and update as needed throughout the startup process.
6. Choose
Your Business Entity Properly
From sole-proprietor to incorporation, each
business entity is a balance of benefits and obligations. Choosing the proper
entity will not only help to start your business but adapt as it grows.
7. Plan
Your Exit to Prevent Stress
Success is not guaranteed. From buy-sell
agreements to ownership rights, having everything outlined and agreed upon
before launch will reduce the stress and complication of closing up shop should
it be needed.
8. Hiring
versus Contracting: Building Your Business Efficiently
While contracting is a popular way of
obtaining services for many startups, it is not without issues. Finding the
perfect contractor is often an involved process. Research the best ways to
staff your business and adapt as needs change to ensure the best balance of
cost and benefits.
9. Research
Insurance Obligations for Startups
From worker’s compensation and health
insurance to liability insurance and property insurance, there are many
insurance protections to consider to protect your business. While they might be
a large part of initial expenses, they can also help to prevent disaster.
10. Avoid
Lock-Ins and Dependencies by Reading Everything
Unless you have experience with a service, try
to utilize services that will allow you to migrate between providers easily. As
your business grows, your needs are likely to change. This could mean bigger,
newer or different platforms are needed as well.
Legal issues are often one of the largest
concerns for many startups. These 10 insights are some of the most common
pitfalls faced by startups. From choosing your business entity to contracting
to save money, these insights will help to ensure the success of your startup.
About the Author: Brett Gold writes on legal
issues in the Chicago area. Brett works in the estate law sector and likes to
make family issues as smooth as possible, look here for
more information about estate litigation. He
spends time with his wife and on vacations has backpacked all over the U.S.A.










