It is fascinating to commence a business, but it still has numerous legal aspects which can notably influence your success. Whether you are an aspiring businessman or experienced entrepreneur, knowing these legal areas is essential.

We at Dickinson Parker Hill Solicitors Ormskirk provide expert advice on how to navigate the minefield of legalities that comes with starting your own business. Here are some key things to look out for.

Choosing the Right Business Structure

One of the first choices that you will need to make is determining the most appropriate business structure. Every structure has its own legal consequences, tax implications and liability concerns. The common types of businesses include:

• Sole Trader: This is the simplest form where you own and run everything by yourself. On the other hand, all risks and liabilities reside with you as well.
• Partnership: It involves two or more persons sharing ownerships, responsibilities and liabilities. It is important to have a comprehensive partnership agreement in place.
• Limited Company: This is an independent entity from its owners thus offering limited liability protection. However, this structure tends to be more complicated and needs compliance with company law.
• Limited Liability Partnership (LLP): Merging characteristics of both partnerships and limited companies, LLP gives flexibility together with limited liability.

The choice of the right structure depends on what your business wants to achieve, how much risk you are willing to take up and what future plans you have in mind. A conversation with Solicitors Ormskirk will help make an informed decision.

Registering Your Business

After selecting a structure, it’s necessary to register your business with relevant authorities. For example if it’s a limited company it should be registered at Companies House. Additionally, if your business meets VAT threshold levels registration may be required while there could also be licensing or permit applications depending on industry.

Understanding Contracts and Agreements

Contracts serve as foundations for any business. They establish relationships, define responsibilities and protect your interests. The main contracts that you may come across include:

• Employment Contracts: These set out the terms of employment such as job positions, salaries and ending conditions.
• Supplier Agreements: Provide for the purchase of goods or services from suppliers on certain terms.
• Customer Contracts: Deal with the manner in which sales will be made to customers, including deliveries and payments.
• Lease Agreements: If you are leasing a business premises this will outline the tenure of your lease.

It is important to have these agreements scrutinized by experienced solicitors so as to ensure that they are sound legally and that they protect your commercial interests.

Intellectual Property Protection

Maintaining competitive advantage necessitates protection of intellectual property (IP). Trademarks, patents, copyrights and trade secrets all fall within IP. You can do the following to protect your IP:

• Register Trademarks: Protect their brand name, logo and other distinctive marks.
• Apply for Patents: Safeguard inventions or innovations if necessary.
• Copyright Registration: Secure original works like software, literature or art
• Non-Disclosure Agreements (NDAs): Keep third party recipients’ privacy when sharing sensitive information

Consulting with Solicitors Ormskirk can help you make sense of complex IP matters.

Compliance with Employment Laws

Employee fair treatment and zero legal complications demand adherence to employment laws by employers. Among such issues include:

• Employment Rights– Understand employee’s rights concerning wages, working hours as well as leave entitlements.
• Health and Safety- Comply strictly with health & safety regulations for an ideal work environment for employees.
• Discrimination Laws– Avoid discrimination in the workplace in relation to race, gender, age, disability among other protected characteristics.
• Payroll and Taxes: Ensure the correct handling of payroll, deductions and tax reporting.

Noncompliance with employment laws could cause you legal battles and ruin your name in the market.

Data Protection and Privacy

With data becoming increasingly important, businesses must adhere to regulations relating to data protection such as General Data Protection Regulation (GDPR). Important points for consideration include:

• Data Collection and Processing: Ensure personal data is collected legally.
• Consent: Get explicit consent from individuals before collecting their data.
• Data Security: Protect the privacy of information from unauthorized access or breaches.
• Privacy Policies: Be transparent about how you handle personal data through a privacy policy.

Penalties can be severe if a company fails to comply with data protection requirements which also lead to loss of trust by consumers.

Preparing for Disputes

Despite best efforts disputes occur in business. It’s important to be prepared and have a strategy for resolving disputes quickly. Some of these are:

• Alternative Dispute Resolution (ADR): This approach uses mediation or arbitration amongst others to resolve issues out of court.
• Litigation: In some cases, it may be necessary to bring an action before a court. It is important that you have experienced solicitors who will act on your behalf.
• Contractual Clauses: Contracts should contain mechanisms for settlement purposes in case of disagreements between parties.

Proactive steps for seeking legal advice early can minimize the effects that disputes can have on business entities.

Conclusion

There are many legal aspects involved in starting up a business that can greatly affect its success. In Ormskirk Dickinson Parker Hill Solicitors will offer expertise needed in guiding you through this minefield as well as giving you the necessary foundations for your firm.