With a new year comes new year resolutions. One resolution for many people is to start a business. Whether it’s pursuing your passion for knitting to becoming a digital influencer, people who want to start a business need to be aware of some basic legal issues. Below, I explore 3 of them.
Entity Formation
You have seen the abbreviations Inc. and LLC after the name of a company. But what do they mean? Inc. (or Corp.) signifies a corporation, while an LLC stands for limited liability company. Although they are similar in some respects (ex. both can provide their owners protection from lawsuits), one major difference relates how each entity is run. Because of the legal formalities associated with operating a corporation, it is more expensive to administer than an LLC. However, considering long term goals, a corporation may still be a better option for many new business owners. In essence, the decision as to what entity to form is not that simple.
For more information about LLCs, read this post about the benefits of having an LLC.
Trademarks
If you desire to gain a national presence, then you should be aware of trademark law. From choosing the name of your business to the name of the product you sell, you need to determine whether your potential marks can infringe upon the trademarks rights of an existing business.
For more information about trademarks, read this post about the reasons trademarks are important to businesses.
Employment
Do you plan on hiring full or part-time employees? If so, federal and state employment laws come into play. How about independent contractors? You should have a contract drafted. In fact, in New York City, you are required to have a contract (read this post). Do you have trade secrets? Then you may want to have employees and contractors sign non-disclosure agreements.
For more information about employment agreements, contact us at 347-946-0597 or info@jllaw.net.
