**The Essential Legal Tasks New Entrepreneurs Should Handle Right Away**
When first starting your business, it’s crucial to ensure that all legal matters are addressed promptly to avoid any potential issues down the road. From setting up a company mailing address to obtaining necessary licenses, here are 10 essential legal tasks that new entrepreneurs should handle right away.
**Set Up a Company Mailing Address**
It’s important to set up a company mailing address, especially for remote businesses without a physical location. This address will be used in all email correspondence, legal documents, and more. Be aware that a P.O. Box cannot be used to receive certain government forms, so a physical mailing address may be necessary.
**Check for Preexisting Trademarks**
Always check for preexisting trademarks when creating your brand or developing a product. Infringing on a registered trademark can lead to legal trouble, so it’s essential to ensure that the name you choose is not already trademarked.
**Find a Good, Experienced Lawyer**
A good lawyer who understands corporate law, finance, and mergers and acquisitions can help navigate future legal matters that may arise at incorporation. Look for a law firm that can modify existing documents and assist with negotiations to ensure your business is legally sound.
**Establish the Business as an LLC or Corporation**
One of the most important legal considerations is to establish the business as a limited liability company (LLC) or corporation. This is crucial for obtaining a federal tax ID, which is required for bank accounts and insurance policies.
**Put Financial Agreements in Writing**
It’s essential to put all financial agreements in writing to prevent any misunderstandings in the future. This includes the nature of the return on investment, demonstrating your commitment to the business and intent to make a profit.
**Publicize Your Company Legally if Necessary**
Before starting your business, determine if you need to publicize your company legally. Some cities and states require business owners to publicly announce the creation of a company to avoid fines and legal issues.
**Understand Your Estimated Tax Payments**
Talk to a CPA about estimated tax payments, especially if you offer professional services. Underestimating tax obligations can lead to financial trouble, so it’s important to stay on top of estimated tax payments per quarter.
**Ensure You’re Following the Right Payment Rules**
Compliance with payment regulations is crucial, especially when working with clients in other countries. Working with a legal professional can ensure your business follows all the necessary rules for accepting payments.
**Register Your Business Name**
Choosing a unique business name that’s not already taken and registering it promptly is essential. This may take some trial and error, but registering the name as soon as possible will prevent any legal issues.
**Obtain Any Necessary Licenses**
In many countries, a business license is required to operate legally. It’s crucial to obtain any necessary licenses to prevent legal trouble and ensure your business is operating within the law.
By addressing these essential legal tasks right away, new entrepreneurs can ensure their business is compliant and legally sound from the start, setting the foundation for long-term success and growth.
