Entrepreneurs looking to start a business can take steps to mitigate the risks of problems in the future. These steps should include taking the time to review some of the more common mistakes so that you can help your business avoid falling victim to the same issues. The following provides some guidance.
#1: The business structure
One of most common mistakes involves choosing the wrong busines structure. Different structures have different benefits and risks. Before making your choice, review each for liability protections, tax benefits and investor options while also looking at the expense as well as the amount of time and paperwork that comes with each option.
#2: Intellectual property
Intellectual property (IP) is often what makes a business stand out and succeed within its given marketplace. This type of asset requires special protections. A failure to do so can leave it vulnerable. The right type of protection depends on the IP. Inventions can generally qualify for protections with a patent while unique works like writings, art, software, and architecture may require a copyright.
#3: The Internal Revenue Service
There are very few people that enjoy the prospect of dealing with the Internal Revenue Service (IRS). The reality is that Uncle Sam is involved in almost every aspect of our lives, including business endeavors. We touch on this a bit above, when noting the importance of business structure selection, but this is just one part of the process that leads to a discussion about taxes. Other considerations include compliance with federal, state, and local tax rules.
What if I made a mistake?
Business owners that have fallen victim to one of these or another mistake are not alone. Fortunately, there are options. Legal remedies are available in a variety of situations. These could include a dispute with partners or shareholders over the business structure and future of operations or a need to protect IP that is challenged by a competitor and concerns that proper protections were not in place. The best way to resolve the issue will vary depending on the details of the situation, but an attorney experienced in this niche area of business law can review the issue and help you decide the best options to preserve your business interests.