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Starting a business allows you to map your own path and support your family’s future. A startup attorney provides valuable guidance to help you make the right decisions and face the challenges ahead. Here are a few considerations this professional will help with as you start your business.

How to Start a Business

1. Choose an Appropriate Business Entity

The business structure you choose will dictate your tax obligations and personal risks. A startup attorney will help you select the best option based on your needs.

With a sole proprietorship, you’ll retain 100% control of operations. As your business assets and liabilities aren’t separate from your personal ones, you will be held responsible for company debts. 

With a limited liability company (LLC), you’re protected from personal liability, so your belongings won’t be repossessed to cover debts and lawsuits. LLCs aren’t subjected to corporate taxes, as profits and losses are reflected as personal income. Instead, you might pay self-employment taxes for Social Security benefits.

If you have business partners, a limited partnership might be recommended. All profits are reported in personal tax returns. The general partner has unlimited liability and must pay self-employment taxes, while the co-owners have less liability and restricted control of operations.

2. Safeguard Your Intellectual Property

startup attorneyAs a new venture, you might have novel products and ideas to bring to the market. If you don’t legally protect your intellectual property, competitors can copy your innovations with no legal consequences.

To prevent this, your startup attorney will help you apply for patent protection with the United States Patent & Trademark Office to safeguard original work. Your lawyer will also draft confidentiality agreements to prohibit employees and partners from sharing trade secrets with competitors and the public. 

3. Obtain Insurance

If a customer sues your business, out-of-pocket expenses for damages could cripple your finances. To protect yourself from lawsuits and follow the law, you need general liability insurance. In a lawsuit, this policy will cover a portion of the settlement amount, medical expenses for injured parties, and legal fees.

If you have employees, workers’ compensation insurance may also be legally required to cover medical bills and lost income if an employee gets hurt on the job.

 

To ensure your new company is legally protected, contact The Law Office of W. Randall Holcomb, PLLC, in Greensboro, NC. As a member of the North Carolina Bar Association, this startup attorney helps clients in Guilford County ensure their new ventures meet legal requirements. They also provide litigation assistance to help as your business grows. Find out more about their work online, and call (336) 888-8760 for a consultation. 

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