Laying Down the Law
Don’t be legally blind–watch for these common start-up blunders.
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You just started your business–who has time to think about anexit strategy? If you’re putting off making such plans,you’ve committed a very common legal mistake, says Alan S.Kopit, partner at Hahn Loeser & Parks LLP in Cleveland andadvisor to Lawyers.com. “Now is the time to decide thoseissues–not after a problem develops,” he says. Here, Kopitruns down a few more common legal blunders to avoid:
- Failing to get good advice:Don’t ever go it alone. Instead, Kopit suggests entrepreneursenlist the services and counsel of a good lawyer, an accountant andan insurance agent at the very beginning of their start-upventures. “Younger [entrepreneurs] particularly need people tobounce their ideas off of,” he says.
- Neglecting important employmentconsiderations: Hiring issues are a major legalconsideration for start-ups. Consider whether you need a writtennoncompete contract with employees, whether you’ll useindependent contractors and so on.
- Selecting the wrong businessstructure: Should you classify your business as a soleproprietorship, an LLC, an LLP or a corporation? “There aretax implications that go along with [each choice],” cautionsKopit. Be sure to weigh each option with the help of your advisorsto determine which form will best serve your business plan.
For more information, log on to Lawyers.com and get a free copyof Kopit’s handbook, Getting Started on Your LegalLegwork.
You just started your business–who has time to think about anexit strategy? If you’re putting off making such plans,you’ve committed a very common legal mistake, says Alan S.Kopit, partner at Hahn Loeser & Parks LLP in Cleveland andadvisor to Lawyers.com. “Now is the time to decide thoseissues–not after a problem develops,” he says. Here, Kopitruns down a few more common legal blunders to avoid:
- Failing to get good advice:Don’t ever go it alone. Instead, Kopit suggests entrepreneursenlist the services and counsel of a good lawyer, an accountant andan insurance agent at the very beginning of their start-upventures. “Younger [entrepreneurs] particularly need people tobounce their ideas off of,” he says.
- Neglecting important employmentconsiderations: Hiring issues are a major legalconsideration for start-ups. Consider whether you need a writtennoncompete contract with employees, whether you’ll useindependent contractors and so on.
- Selecting the wrong businessstructure: Should you classify your business as a soleproprietorship, an LLC, an LLP or a corporation? “There aretax implications that go along with [each choice],” cautionsKopit. Be sure to weigh each option with the help of your advisorsto determine which form will best serve your business plan.
For more information, log on to Lawyers.com and get a free copyof Kopit’s handbook, Getting Started on Your LegalLegwork.
