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Let’s face it, for many of us starting a new business on a shoestring budget the prospect of hiring a competent business attorney is little more than a pipedream. As a grassroots entrepreneur, I get that. But as a small business and IP lawyer, I also know that there are some legal considerations a new business cannot afford to overlook. That said, I have attempted to identify what I consider to be, the four most important considerations even the bootstrapping start-up will need to address.

1. PROTECT YOUR PERSONAL ASSETS:

In short, this means you absolutely positively need to create a properly formed limited liability entity (LLC, C-Corp, S-Corp, etc.) if you plan on conducting any kind of business activity anywhere. The old “sole proprietorship” that you can file in your county offers no legal distinction between YOU and the company. This means any action filed against you in the course of your business activities will be directed at you and more importantly, your personal assets.

2. PAPER YOUR DEALS PROPERLY:

Too many new businesses anxious to get the revenue ball rolling ignore the importance of having the appropriate contracts and agreements prepared to protect their interests. This can be a big mistake. I always make sure my clients have, at the very least, their primary contract(s) (service agreement, EULA, License, Privacy Policy, etc.) developed BEFORE they begin transacting their business.

3. MAKE SURE YOUR TRADEMARK DUE DILIGENCE IS DONE BEFORE YOU START SPENDING BIG MONEY ON YOUR BRAND!

None of us would consider buying a business without conducting the proper due diligence. Yet so many entrepreneurs give short shrift to their trademark due diligence, which is a form of insurance because it protects the business from a potential Cease & Desist letter by a firm poised to launch an infringement action.

4. LEGAL RESEARCH ON YOUR SPECIFIC BUSINESS OPERATIONS:

It should go without saying that if there is any question about the legality of the nature of your business, it should be researched before making any investment. Make sure your business operations clear all necessary federal and state regulations and laws before committing and putting yourself in a compromising situation.

This is by no means an exhaustive list of issues a new business needs to consider. I have merely mentioned what I think are some of the most important aspects often overlooked by a bootstrapping entrepreneur.

http://www.lanternlegal.com">www.lanternlegal.com

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