Legalities of Startups

After doing research on the legalities that come with launching and building a business, it is obvious that there are many things one should consider when starting. The biggest thing my research has found is the importance of things like getting an attorney and choosing whether to make the startup an LLC or a corporation, versus a sole proprietorship or a partnership. This is a common mistake that entrepreneurs make as LLC’s and corporations usually have tax advantages and fewer liabilities than the other forms of ownership. One other important misconception about creating a business is that standard contracts that are created are often not fair for both parties. It turns out that most businesses create contracts that favor your own business more so than the other party. This sounds unconventional yet many businesses do this. 

Startups also have a plethora of legal backups that help them to keep their product sustainable. Things like as copyrights, trademarks, and patents, although expensive and time consuming, are extremely effective in keeping business in house. However, other businesses will use these rights against many startups so it is extremely valuable for startups to hire an attorney that will make sure that no trademarks or domain names exist that sound similar to the startup. Privacy policies and terms of agreements are extremely effective in keeping all legal attacks controlled and away from startups and the common denominator for protection is a good lawyer that will review and check that the startup is ready to go.