Legal Considerations When Starting a New Business in Knoxville, TN
Starting a new business is both exciting and challenging. Although you may concentrate on coming up with products or services and getting customers, there are different legal aspects to pay attention to. You need to put the right structures and processes in place to avoid setbacks and headaches in the future. As you embark on a new journey, you can avoid making costly mistakes if you hire a business litigation lawyer Knoxville TN. Below are legal considerations to keep in mind:
Select the Right Business Structure
The business structure you pick can have serious implications on liability, management, and taxation. Options for business structures include sole proprietorship, limited liability companies, partnerships, and corporations. Every kind of structure has pros and cons. For instance, LLCs offer liability protection for business owners and management flexibility. Meanwhile, corporations may provide access to external funding through stock sale; however, regulatory requirements for this structure are more extensive.
Safeguard Your Intellectual Property
A startup that depends on unique designs, inventions, or creative works must file patents, copyrights, or trademarks to protect its IP or intellectual property. Also, non-compete and confidentiality agreements must be implemented with employees and contractors for additional trade secret protection.
Craft Agreements and Contracts
Your startup should make legally binding contracts for different purposes, including contracts with suppliers, customers, partners, and employees. A well-drafted contract can prevent disputes and litigation. You should consult with a skilled business lawyer to make sure each of your contracts addresses related legal aspects and safeguards your interests.
Comply with Employment Laws
Recruiting workers and contractors comes with responsibilities. You must comply with state and federal employment laws such as wage and hour regulations, establishing workplace safety standards, and anti-discrimination laws. You need to make an employee handbook that presents your company’s policies and procedures. This can help guarantee compliance and set expectations for workers. A business lawyer can help make sure you come up with a legally-sound employee handbook.
Secure Capital and Funding
For your startup to grow and succeed, it needs external funding. But you must consider a lot of legal things when you seek investment. Your lawyer can explain the legal requirements you must meet when raising capital, whether you prefer angel investors, venture capital, or crowdfunding.
Implement Taxation
No matter the size of your business, it has tax obligations. You need to understand your reporting and liability requirements. Your lawyer can help make sure you comply with tax laws.
