Legal considerations when planning a business
Investing in a company isn’t always the safest option, but it may be pretty rewarding.
You may set your own schedule, run your business whatever you want, and be your own boss, but you still have to watch out for the legal aspects.
To achieve the latter and avoid unnecessary risk, new business owners should prioritize the following:
Trademarks
Handling a trademark application is no easy feat. In fact, Google searches like “what do I do when my trademark was rejected?” will let you know that it’s a typical case for many.
Still, that doesn’t mean that proceeding with this step is a lost cause since trademarks offer several commercial benefits for any business.
As a result, it’s critical to discover whether another company uses the name you’ve chosen for your new firm.
Doing so will help you avoid infringing on another company’s trademark and facing a lawsuit. After you’ve decided on your formal business name, consider trademarking your logo and trading name immediately.
This prevents others from registering their business under the same name, thus, preserving your company’s edge in a competitive market.
Licenses
Before you can launch your company, you will need to get several permits or licenses.
You can determine the number of licenses required for your company by the kind of facility you want to open. Generally, you’ll need a sales tax permit, a business license, and a trade license.
If you want to operate a catering, restaurant, or bar business, you must register with the local regulatory body in charge of health and safety monitoring and food standards.
However, if you want to have entertainment offers at your institution, you’d also need the required entertainment and music licenses.
To discover more about the exact licenses, you must operate your company lawfully. It’s important to do additional research and contact appropriate local government organizations.
Non-disclosure and confidentiality agreements
If you want to deal with a bank or other partners for company finance or get into contracts with suppliers, be sure you have appropriate non-disclosure and confidentiality agreements in place.
These people will have access to company information that you may wish to keep secret, so you should think about drafting these contracts. Make sure that all of your suppliers and partners sign them as well.
Knowing which rules apply to your business is especially vital if you wish to create a corporation in another country.
If you wish to expand abroad, make it a point to contact a reputable corporate law company that can help you through every legal stage of the process.
Independent contractor/employee agreements
State and federal laws provide employee protection, notably the Fair Work Act. As a result, employees have entitlement to benefits such as sick leave, superannuation, yearly leave, minimum pay, etc.
On the other hand, contractors are self-employed and manage their own businesses. You’re not obligated to pay their PAYG tax, insurance, or superannuation in general.
You must determine if the worker is a contractor or an employee since each has special rights and privileges. If you get this incorrect, you might face financial and legal consequences.
Once the connection has been accurately evaluated, you must document using either an independent contractor or employee agreement.
Regardless of what kind of agreement it was, it should address the worker’s duties, function, and even rights.
Insurance
An employer liability insurance is required in most business zones for any firm that employs a large number of people. Not only is this legally required, but having enough coverage will save you from accruing penalties for each day you are uninsured.
You also prevent yourself from being open to compensation claims from guests and workers who got ill or injured while on your property.
In addition to employer liability insurance, you may wish to consider investing in professional indemnity. These forms of insurance will safeguard your company against compensation claims if anything else goes wrong.
Summary
Starting a company is exciting, but it’s critical to comply with all legal regulations to ensure that your firm has sufficient protection as you begin building.
If you’re considering establishing a company and would want to discuss any of the following, your best shot is to contact a reputable legal expert to guide you throughout the process.