When starting a new business, one of the first decisions to make is the type of business structure that you will use to operate your business. Working for yourself, turning your ideas into reality, and making your own money has motivated many to take the entrepreneurial route and set out on their own. In the heat of launching a business, obvious legal issues can often be overlooked that can derail an otherwise well-thought-out business plan.
Deciding on the right business structure, registering your trade mark and putting in place basic legal documents are just a few of the steps you should take.
How to do it?
Step 1: Form a business
As a founder, you should consider the needs of your business carefully. Choose the structure that will work for you now, but more importantly, makes sure it will work in the years to come. Depending on the type of business structure, you may require a Partnership Agreement or Shareholders’ Agreement as a legal most basic legal document during your start-up.
While businesses typically start out bootstrapping, at some point many business owners need to look to other sources of funding to secure the capital necessary to maintain operations and grow the business. Depending on what your source of funding is, you will need different legal documents to manage the new infusion of capital.
Once you have your business concept and legal entity in place, a crucial step is to hire the right talent to form your team and grow your business. Manage the recruiting process right by having these key documents in place.
Whenever your business develops intangible human creations, it is key that you secure your Intellectual Property (IP) rights in order to protect your creations. Intellectual property is a core asset of a business. The main types are trademarks, patents, copyrights, and trade secrets.
In every business that involves selling goods or services, it is crucial to have key documents in place to ensure manage the relationships with your stakeholders, whether these are customers, sellers or business partners. There are a number of documents that your startup may need depending on the type of business and the products or services you offer.