Many people in America dream of owning their own business. Every day, people quit their jobs and risk everything so they can have the freedom and control to make their own way in the business world. Many who become entrepreneurs certainly have the business knowledge and experience to be successful. Unfortunately, even great entrepreneurs fail to consider the legal aspects of their new endeavor and they fail to reach their full potential as a result. Various laws and regulations can be stumbling blocks to business owners, as can the failure to understand and employ helpful aspects of the law to minimize risk.
[blockquote_left] Even great entrepreneurs fail to consider the legal aspects of their new endeavor and they fail to reach their full potential as a result. [/blockquote_left]
Some of the most common issues that affect businesses involve choosing the right entity, contract basics and various employment matters.
Some things a business owner should consider when forming the company are whether the business be established as a limited liability company or a corporation, whether there are any tax planning and asset protect needs and whether the business will seek investors.
Business owners need a basic understanding of contracts, such as knowledge of how contracts can be formed and become enforceable. Some potential pitfalls with respect to contracts include lack of consideration, lack of authority to sign and getting a party’s name or identity wrong.
According to cnn.com, 79% of businesses have no employees. Of course, those businesses that do have employees must be aware of the laws and regulations affecting employers. In addition, those that are considering hiring employees should be aware of various alternatives to traditional employees in order to structure the business in a manner best suited for the business.
Other matters to consider for new (and existing) business owners include various business agreements, employment-related agreements, planning for transitions (where an owner wants out of the business) and collections issues.
Being successful in a new venture takes more than a great business mind. Whether a business is effective in navigating the challenging regulatory environment which currently exists can play a large role in determining whether a business succeeds or fails.
If you need any assistance with planning for a new business, understanding the legal aspects of your business or preparing any type of business or employment related agreement, Vann Attorneys would be eager to help.