5 Common Legal Issues Startup Businesses Face

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An entrepreneur’s most challenging legal obligations occur at the very beginning of a company’s formation. This article highlights the key issues to address when you start a business in the UK.

While the law might appear to be a constraint on the upfront, it’s actually a tool aimed to protect business owners. If you’re aware of your responsibilities and follow the rules as they stand, you will have no problems.

Key Legal Issues for Startups

Before launching any kind of business venture, you must make sure that you are meeting the requirements of the law listed below.

1. Obtaining Proper Licenses and Permissions

There’s a good chance the trade you want to get into requires a license. Check with your local council for details to avoid legal issues. For example, if you’re going to own a restaurant or café, you’ll need to make sure it’s registered for food and upholds health and safety standards. Liquor, medical, and entertainment sectors all require proper licenses before you can start operating them.

Additionally, you can get your business insured to ensure that your license will be protected if you’re ever in a difficult situation.


2. Choosing a Structure of the Company

You have three choices with your business structure: sole proprietorship, partnership, and limited company. So, let’s discuss the advantages and disadvantages are different for each one.

Sole proprietorship causes the least hassle. Technically the business owner is self-employed in this business structure. However, the owner also has the most probable liability. In addition, sole proprietors often register their homes as business residences, and they may lose them if the business venture fails.

Partnership allows sharing of risks between business partners. To avoid conflicts in a relationship, it’s crucial to formulate a partnership agreement specifying the rights and obligations of both parties.

Limited company structure creates a complete separation between personal and corporate assets. However, it comes with the most legal restrictions, obligations, and expectations. These legalities are meant to ensure the safety of workers, partners and investors. Firms like Simon Law PC could help you with this as legalities can be confusing a lot.

3. Creating a Unique Brand

If you want to protect your business from trademark infringement, it’s vital that your business’s name isn’t extremely similar to any other registered business name. So, choose a unique name and create your own brand.

4. Applying for Patents

If you have a unique product or process, protect it with a patent. However, it is not uncommon for employees to leave and join competitors. That’s why you need to cover all the bases, including having solid legal protection.

If you’re planning to expand internationally, you’ll need more than just a UK patent. You’ll also need to protect your brand with trademarks, register your designs and copyright books and other works on an international level. The easiest way to register a trademark is to hire a professional trademark attorney. He will guide you through the process and help you with all additional legal matters.


5. Paying the Appropriate Taxes

It’s in your best interest to acquire the services of a professional corporate tax specialist. Also, be sure to take advantage of tax deductions and benefits. In addition, it makes sense to partner with a professional who can assist with the registration process and filing returns.

Tips to Handle Startup Legal Issues

  • Review your business needs for the required licenses, certificates and permissions.
  • Please apply for the required licenses and get their approval.
  • Choose a corporate model that suits your needs best.
  • Ensure all your business documents are complete from the very first day.
  • Create a unique title and brand for your company.
  • Do not hesitate to take advice from the professionals where needed.

If you acquire a decent grasp of the six tips mentioned above, dealing with the law will be less strenuous and more efficient.