General Overview.
The business field is a highly competitive and profitable field, and as such safeguards should be put in place to ensure the future of your business... Protecting your intellectual property should be one of the paramount ideals to your new endeavor. There are several options that you can utilize for the protection of your business and business ideas ranging from Trademarks to Non-Compete agreements. The following is an outline of common business topics, ideas, and/ or concerns to consider:
- Business Plan: A proper plan will show projected revenue, marketing, and liability strategies. This is a must for financing your business endeavor.
- Confidentiality Agreements: Protect your ideas (intellectual property) while still figuring out the cost(s) associated with any service or product you may want to develop.
- Business Formation: Whether your concern is personal liability or reverse asset protection, your choice of business entity will carry limitations regarding liability. The liabilities imposed on the entity choice and will have varying tax implications.
- IRS Implications: Your decision to be taxed as a C-Corporation, S-Corporation, or an LLC taxed as an S-Corporation will have different requirements and tax liability. Understanding the tax issues associated with the particular entity you want to form is one of the first steps to opening a successful business.
- Shares / Share Holders: Do you need investors? If so, you may want to offer shares of your business to potential investors. This is not an easy task and should be carefully thought out and planned.
- Employees: Do you plan to hire any employees? If so, you need an EIN number (not only for hiring employees) and you must consider the tax implications, form filing requirements, and the difference between contract labor (1099) and regular employees.
- Product Liability Insurance: Does your company plan to offer products to the general public (stream of commerce), if so, products liability insurance is a must have for any business developing or re-branding items to sell.
- Trademark & Copyrights: If your company has a "Mark" whether in an industry as a product or a service, protecting your mark with the United States Trademark Office is a viable option to allow for proper protection against trademark or copyright infringement. This applies to Copyrighted material as well.
- Usurpation of Corporate Assets or Ideas: If a director, partner, or other individual seemingly attached to your business or business endeavor usurps an idea for their personal gain or the benefit of another entity which they may be attached to is actionable.
- Buy/Sell Agreements: Depending on a partner may be a necessity; however, if tragedy strikes or a falling out occurs, you must have a plan of action to avoid protracted litigation. Buy/Sell agreements are common practice and should be used when individuals start a business together.
- Selling your business: Selling a business requires a proper valuation of business income and assets. This transaction will create certain tax liabilities as well as lingering credit liabilities that should be dealt with accordingly.
- Franchising: Franchising your business is cumbersome and possesses specific requirements. Are you ready to Franchise your business?
It is hard to understand all of the intricate
issues and liabilities one may have in owning a
Corporation or other Business Entity. Let us help
aid in your understanding of your new business
venture. Starting a new business can be a very
exciting experience if completed properly!
