A startup company is one that’s just getting off the ground, and as such has no operating history. Most startups are looking to create a new market, and they are often associated with new technology, especially in the IT sector. Startups come with certain risks; for instance, laws may not fully cover new medicines, technology and inventions. These companies often experience significant growth at the start, but can be hampered by a limited market.
Considerations for Startup Business Owners
Although a startup is built from scratch, it doesn’t come out of thin air. These businesses require a great deal of planning and foresight to be a success, and part of the excitement is in finding the perfect market niche. To do so, a business owner needs to understand the field they’ve chosen, and the laws by which it is governed.
Aspects worthy of consideration include:
1. Expenditures and planning
2. Tax law
3. Business regulations and zoning laws
4. The type of business form (corporation, sole proprietorship)
5. Contract limitations and rights
Dealing with Legal Issues During the Startup Phase
In most cases, it’s impossible to litigate against a startup before it is officially recognized by the state and governed by its business laws. Liability for violations can change, however, when the company files its articles of incorporation within the state; this especially applies to LLCs. If you are having legal trouble with a startup, you may need to go to a Business Lawyer from Gnuse & Green Law for advice. Be sure to keep documents supporting your claim, as they can be used in the future.
I’m Starting a Company from Scratch. Should I Hire an Attorney?
Startup businesses have very specialized needs and issues, and if you need any help with such a company, you should consult with a business attorney in your area. Your lawyer can help you review your legal options, while planning for the success of your business. If you have any legal conflicts, your Business Lawyer can work within state law to get you the damages to which you’re entitled, and he or she can represent you throughout the legal process.
