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There are numerous startup legal issues you can face whether you begin a home business or decide to scale into a plush new office or factory floor setup. Here are the most common.

Not Deciding on the Legal Form

The legal form is important because it dictates how your business will operate at the highest levels. Many business founders often don't consult legal firms when they startup. If you do this, you can face legal issues, higher taxes, and asset loss. So before you do anything, consult with experts in the field, such as Manfred Sternberg & Associates. They will assess your business and advise whether you should be an LLC, Partnership, Sole Trader, or a C or S corporation. 

Failing to Understand Stock

Your business can sell stock if it is an LLC or a corporation. But there are very strict laws that govern how the stock is issued. And failing to comply with these can result in criminal and civil actions against you. For instance, the United States governs stock sale and acquisition under the Securities Laws, which are Federal. The financial penalties can be harsh and might be enough to put you out of business forever. For example, you will be forced to repurchase shares that were allocated or sold unlawfully. And this doesn't include the various other penalties.

Startup Legal Issues Include Copyright

You can run into copyright issues pretty quickly if you aren't careful. And this doesn't only relate to patents or original works. Even your company name, logo, or domain name can come under scrutiny. To be on the safe side, never use the word "Monster" under any circumstances in any kind of branding. To be safe, even a quick Google search of your desired business name will help with most issues. You can also search trademark offices and domain lists online.

Poor Document Handling

There always needs to be a paper trail for everything. If you don't have the necessary documentation to back you up, then you will lose any case. This relates to everything from HR and employee records to contracts and even staff absences. Any legal case that is brought against you will depend on you having the ability to defend yourself. So always create documentation in paper and digital form, and keep records in files and in secure cloud servers.

Tax Issues, Of Course

The list of taxes you need to pay as a business is almost mind-boggling. First, just getting a tax ID can be a nightmare. Then you need to figure out the business form which can affect your taxes. And then there are the many added taxes or even tax breaks you can get as a startup. The thing is that nobody tells you any of this. And this issue alone requires its own branch of legal study. For tax issues, it's always best to consult a lawyer rather than try to do it yourself.

Summary

You need to be aware of certain startup legal issues. These most commonly include using the wrong business form, copyright problems, and the ins and outs of each country's tax system.