- Forming a successful business is a planning-intensive process. In addition to deciding the operational and management aspects of the new entity, you have to pay attention to the legal aspects as well. The ideal way to get started is by hiring a business law attorney in Austin, TX or whichever part of the country you will be forming the business. The business lawyer will help you in making the right legal decisions that will pay a vital role in seamless operation of the company in later years.
- To give you an overview of the legal issues in business formation, we are discussing the most important ones in the blog post.
Type of Entity
- Sole Proprietorship
It is an unincorporated business that is owned and run by one individual. There’s no difference between the owner and the business.
An independent legal entity owned by shareholders.
- S Corporation
An S Corporation isn’t taxed itself, so you can pass the profits and losses to your personal tax return. Only the shareholders in this type of entity have to pay the taxes.
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A single business entity where the ownership is shared between two or more people, who have share in the loss and profit.
- Limited Liability Company
It is a hybrid of a corporation and partnership. While the entity has tax efficiencies similar to a corporation, the operational flexibility will be same as you find in a partnership.
TrademarksThe logo and name of a business are an important part of its identity. If you don’t want to get involved in legal copyrights and trademark issues later, it is important that you perform a trademark search of the business’s prospect name in the beginning. Refer to the information provided by the United States Patent & Trademark Office so that your business has a unique identity.
Non-Disclosure AgreementA non-disclosure agreement is a legal contract where one or more parties agree not to disclose any confidential information that is shared between them with a third-party. If your business has developed or acquired a vital information that gives it a competitive advantage, make sure to have a non-disclosure agreement.
- Wrapping Up
Whether you need to make a decision regarding the type of entity or want assistance in drafting and filing formation documents, hire a business attorney to avoid any legal complication later. The lawyer will make sure that all the legal bases are covered at each and every step to establish a successful business.