What are the legal concerns in starting your own business and in the actual operation?

Question

Hi!

I'd just like to ask, what type of business do you guys operate? Have you had any legal concerns or problems in starting your own business? How about during the actual operation?

Thanks!

Answer 1

I've worked for and started numerous businesses. The legal side is always an important aspect both at the start and during operations.

At the start: You need to decide what type of company you want to be for instance: ltd, ltd partnership, partnership etc.

That will set a frame on your company. For instance a ltd company is a legal entity on its own.

Moreover if you are going to sell things you might require licenses depending on where and what you sell. Same applies for services (Again depending on what it is that you want to do). If you are going to do some exporting/importing you will be involved with taxes on imports or exports. If you start making money you will need to pay taxes (if you earn enough money, depending on your country), then you will need to apply for VAT, then if you get workers you have to get them contracts and pay salaries and taxes (At this stage it is best to get a lawyer as a consultant.)

During: You need to have access to a lawyer at all times, especially if you deal with retail or services where you work with a lot of people. Because people WILL want to sue you (Both clients and workers), and you need to know what you can and cant do legally. There are countless things that you can run into here. If you want a lawyer cheap, there are companies that offer consultancy instead of getting your own personal lawyer.

Hope this helps.