Starting a new business can be an exciting time but it’s important to pay close attention to some important details, including legalities. Regardless of the type of industry you are starting your business in, there are a variety of legal aspects to know before making the big move. You may run into a few surprises when starting a new company but by doing your due diligence, you can ensure that a lawsuit is not one of them. Below are just a few of the top legal aspects to consider.
- Establish a Buy-Sell Agreement
If you’re going into business with a partner, it’s important to establish a buy-sell agreement to determine what will happen is a partner decides to exit or passes away. You never know what might happen so while a partnership might seem 100% concrete, it’s best to protect yourself and institute who gets what and under what terms. By addressing these types of issues up-front, you can avoid some ill-fated repercussions in the long-run. - Harness the Power of Documentation
Documentation is essential when starting a business. Get any and all paperwork in ahead of time – you’ll thank yourself when your company begins to grow and all your initial paperwork is completed. Such documents include confidentiality agreements, offer letters, initial customer contracts, option agreements, and much more. - Take Notice of Trademarks
As your company begins to grow, you will begin to build a brand name that becomes known throughout your industry. Don’t get a few years into your business only to realize that you’re using a variant of another company’s name who wants to sue you. Do your homework and trademark your business name beforehand. - Prepare for Employee Issues
It’s inevitable that not every employee you hire will work out. You can prepare for employee issues by having complete offer letters with non-competes, mutual agreement to arbitrate clauses, and other protective additions. Always keep copies on file and formally document any disciplinary write-ups and reviews to help protect yourself for the future. - Keep Up With Contracts
The importance of having contracts with clients, employees, and vendors cannot be stressed enough. Always outline terms and conditions to protect your company. - Hire a Trustworthy Lawyer
Perhaps the most important tip is to hire an experienced and trustworthy lawyer to handle the legalities of your business needs. From contracts and agreements to disputes and litigation, it’s vital to have a lawyer on your side.
Contact Catanese & Wells, an experienced Los Angeles business litigation lawyer today for legal assistance.