What You Need to Know About the Legal Side of Your Startup

Between developing a business plan, formulating a budget, creating a brand and ordering the first round of promotional items, it is easy for entrepreneurs and start-up enterprises to overlook the legal implications of starting a new business. While perhaps perceived by many as something between a luxury and a necessary evil, undertaking the appropriate steps to ensure that the business’s owners and assets are adequately protected should be a top priority for any emerging enterprise. This article outlines some of the basic legal issues implicated in starting a new business.

Selecting Business Partners and Choosing a Form of Entity

Sure, you and your college dorm mate spent literally thousands of hours co-developing your innovative product before you graduated, you have common interests in seeing the product succeed in the marketplace, and you trust each other completely. All of that means nothing. After the first million comes in and you want to sell but your partner claims he owns everything and tries to push you out while unveiling the secret partner he has been sharing information with for the past six months, your once and future friendship will get you nowhere. Even in the most amicable of circumstances, is almost always worthwhile establish a formal legal relationship and clarify the parties’ respective rights and obligations in writing before the enterprise gets off of the ground.

Read more via  Under30CEO.

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