As an entrepreneur, It’s important to understand the correct legal actions to take based on your situation and goals for your business. Getting started in the right direction is essential and is not something you should take lightly. Read to the end and find out how you can set-up your business and be certain of its success every step of the way.
Choosing the Right Business Structure in Ohio
You’ve probably heard of LLCs and possibly S-corps and C-corps, but what’s the difference and which structure should you choose for your business? Tax treatments, ownership requirements, and formalities and duties are all key factors that differ between these business structures.
You can elect to be taxed as an S-corp or C-corp with more financial flexibility coming from the S-corp tax structure. C-corps do allow you to issue small business stock ownership (QSBS), which is also something to consider.
Unlike C-corps and LLCs which have an unlimited number of equity holders and can offer multiple classes of stock, S-corps are less flexible when it comes to ownership; being limited in the amount of equity holders they allow, and to only one class of stock. One major appeal of starting an LLC is that the duties and responsibilities of running and having an LLC are much more flexible and more informal than the requirements of a C-corp and S-corp.
Drafting Strong Contracts with Clients and Vendors
Contracts are key and can establish trust, prevent disputes, and protect against legal issues. If you have a legal agreement with someone and are on the same page, it can make operations a lot smoother when both parties know they’re protected.
Shaking hands versus having a legal document with a signature could be the difference between you and parting with your intellectual property, money, and/or company.
In other words, always make sure you have detailed contracts that protect the best interests of all parties involved.
Protecting Your Intellectual Property
If your innovative and creative idea is the unique selling point for your business, then legally protecting your intellectual property as an entrepreneur may be something you take for granted but it is absolutely essential for your business.
Establishing legal protection over your unique idea can give you a competitive advantage in the marketplace. Patents, Trademarks, Copyrights, and Trade secrets are all ways to legally secure your intellectual property and aid in your potential success.
Understanding Local Permits and Licensing Requirements
Permits and licenses are important for your business to operate legally and comply with regulations at the local, state, and federal levels.
Having the legal permission to conduct business within your state, operate in certain areas and zones, and sell and distribute certain products, is going to be important for an established and well known business either now or in the future.
Interested in learning more? Consult a legal professional to receive additional guidance on starting and protecting your business in Ohio.
Committed to Protecting Your Company? No more risks or sleepless nights
Setting up your business in the best way from day one is an important step you need to take if you’re serious about succeeding as an entrepreneur. The best companies operate under the best legal structures, with professional legal guidance to help them along the way. Activate Law makes all of this possible and more with its Basic Start-up Package for small business owners and entrepreneurs. Ryan Schick-principal attorney at Activate Law-will act as your personal legal guide and explain the right path clearly so you can be confident in your business foundations. Book a free call with Ryan to get started.