Business owners aren’t generally as enthusiastic about securing the legalities as they are interested in growing their business. Be it a budding business or one that is well-built needs protection from various challenges that may arise concerning legalities.
Following are five legal essentials to secure your business:
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Business registration:
This is the first and foremost legal action to be taken if you are serious about your business. This is important because it is the registration document that serves as standalone proof for any legal proceedings. Also, only a registered business can be listed on reputed business listing sites like Gatello, Yelp, etc. Many start a small business as a side hustle along with their job with the hope that if it kicks off well, they can pursue it full time. Whatever is the case, registering it as a legal business matter as only a legitimized business gives confidence to the client and makes him rely on it. Also, without the registration document as proof, the location establishment, the bank transactions, grants, and loans can’t be processed.
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Business bank accounts:
Many start their business from personal funds and over time keep going as such without having a separate bank account for the business. This can end up with a lot of challenges like a lesser tax deduction, and no track of differentiation between personal and professional expenses such as travel, grocery, stationeries, and more. Establishing a business bank account is not only crucial for professional bank transactions but is also important for facilitating financial services. It plays a key role in enhancing business growth. Also, in times of adversities like having to declare bankruptcy, which none can predict, having separate accounts for personal and business funds will keep your assets safe. Any bankruptcy lawyer in Austin would insist on the same.
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Solid contracts:
A contract for any agreement between two parties namely the client and the business owner or the client and the employee or any other third party involved in any transaction is the way to go. This would be beneficial and dispute proof for both the parties irrespective of their genuineness in keeping verbal agreements which may not be enough evidence in case of unexpected disputes arising. A good attorney can prepare a proper contract with the appropriate terms and conditions without bias towards either of the parties involved.
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Patents and trademarks:
Trademark registrations may be overseen in the beginning stage of a business but the earlier it is registered, the better the advantage. There have been so many successful businesses who have spent over a million dollars in acquiring back their names and logos duplication rights just because they missed registering the same during the initial days itself. The same goes for patenting the new products and services offered. Registration serves as a protective cover in establishing your rights towards your business’ brand representations and product ownerships.
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Estate planning documents:
No one would prefer talking about their incapacitation or death. However, when it comes to business, it is not something that lasts for a few years and is winded up. It is a long-term pursuit and thinking ahead of both hopeful possibilities and undesirable challenges is equally important. Legal documents on who will take over in your absence and planning the same in presence of the nominee and a legal attorney are crucial.
General laws are different from business laws. They need special understanding, improvisation, and proper execution. Hence hiring an attorney to work in the process and getting things in place is always better and more reliable in the long term. That way you can rest assured that the things that have to be done from a legal point of view are taken care of, and your focus can be on building the business.
