Launching a new business is no easy feat as it involves starting from a solid idea and having enough determination to see through your strategic plans. In addition to building partnerships, finding key employees, and gathering resources for your start-up, one of the vital factors you need to consider is various legal essentials that keep your company in line with the law.
Handling legal matters in the early stages of your business growth are crucial as it reduces the likelihood of making costly and time-consuming mistakes that can hurt the opening of your business. To that end, here are a number of legal requirements that your company has to adhere to ensure a smooth, legitimate, and credible operation for your new ventures.
Choose the Right Structure
It’s crucial to understand your business and determine the most appropriate structure for it as it will provide the best possible tax outcome as well as maximize the flexibility in introducing new business partners. Additionally, having the right structure will help protect your assets from risks in your business. There are four main business structures:
- Sole Trader – a business owner that trades on their own.
- Partnership – two or more entities running a business together
- Company – a separate legal entity from its shareholders
- Trust – an entity that holds business assets for the benefit of others
After selecting the legal structure for your business, the next step is to register your company with the corresponding jurisdiction you choose.
Protect Your Intellectual Property
Any idea stemming from your business must be protected by intellectual property rights. This includes creations that are legally owned and considered as a core asset of any business, such as the following:
- Company Brand
- Business Name
Start-ups that are introducing innovative concepts or products to the marketplace are especially vulnerable to theft, which is why it’s essential to protect intellectual property like patents, trademarks, and copyrights. To that end, businesses that register their patents and trademarks have the benefit of exclusivity that can help distinguish them from competitors.
Have Thorough Contracts and Documentation
Many legal litigations involve interpreting contracts or terms and conditions in business dealings, which is why it’s crucial for companies to construct a solid contract when dealing with customers, suppliers, or the purchase of a property and other assets. Having thorough contracts and documentation is vital for the operations of your business as it will prevent potential disputes regarding remuneration for services or concluding deals.
When starting your company, you will have to disclose your ideas, concepts, and business models to several people – this includes potential employees, partners, and business owners from the industry you’re aiming to disrupt. Additionally, you may need to share some information with consultants and potential investors, which is why it’s important to sign an NDA to protect your company’s trade secrets or proprietary and confidential information.
If you’re looking for a commercial lawyer in Brisbane, our expert team are on hand to assist with all your legal matters. Contact GLG today.