Starting your own startup can be a daunting affair.
There are many things you need to organize before you get started. One of the most important things to take care of first is the legal aspects. Starting your own Startup is a serious matter and there are some very important legal steps you must cover before you get going.
Below are 5 Legal tips you need to know before starting your startup
Choose your Business Structure
This is one of the most important decisions you’ll make. When starting a business, one of the most important things is the type of legal structure you select for your company. Not only will this decision have an impact on how much you pay in taxes, but it will also affect the amount of paperwork your business is required to do, the personal liability you face, and your ability to raise money. If you’re serious about your Startup, then it’s advisable you register the business as either a Limited Liability Company or a Corporation.
Registering your Startup as a Limited Company or a Corporation gives you protection over your personal assets and gives you greater legal protection in case of any disputes with consumers.
Choose your Business Name
Your business name helps create a first impression with potential customers and investors, so it’s not a decision that should be taken lightly. On what you want the name of your business to communicate; you want your name to convey your objectives as a business.
Choosing a name is one of the most important decisions you’ll make when you start a new business, as it sets the tone for all your future branding initiatives. Your business name helps create a first impression to potential customers and investors, so it’s a decision you should think through. The right name will empower your business for years to come, so give yourself enough time to make a smart choice.
Register Your Business
Whether it’s a Business name, Partnership, or Limited liability Company, Registering your business establishes a business.
Registering a business is a smart choice for a new entrepreneur for a variety of reasons. There are legal and marketing advantages to registering a business name, Because, with it, you can do many things that people can do including; acquiring property, signing contracts, having bank accounts, filing lawsuits, Getting a Business Loan, and also having a reputation with customers.
Registering a company is the first and certain process if you are running a start-up. Apart from giving a number of benefits and owing great importance, company registration is one of the key stages. It lets you hold power in the market. Company registration is an important decision to make in terms of competing against your competitors and reputation in the market. It has greater applicability than other default stages in businesses.
Pay Your Tax and be Regulatory Compliant
Taxes might not be on your priority list when starting a company, but they should be. You will want to make sure all of your taxes are in order from the beginning. Otherwise, you might be setting yourself up for failure down the road, most startups will want to raise money. This is an area where taxes are important. Having tax problems will be a red flag to those who might want to invest in your company.
Also, depending on the nature of your startup, you will be subject to a number of regulations. Do your homework to understand the regulatory environment
Hire the right lawyer
Engage a good business lawyer who understands the entrepreneurial environment before problems arise. Find a lawyer you can trust and who you enjoy working with, look for that “personal fit.” Build a relationship with your lawyer. Also, one who can make introductions to investors or potential customers.
Disclaimer: The materials provided herein are solely for information purposes. The information presented on this site does not constitute legal or professional advice and should not be relied upon for such purposes or used as a substitute for legal advice from an accredited Lawyer in your state or Country.
By Modupe Odesanmi Director, Legal & Compliance Legal