When you start a business, make sure you don't skip over the legal side of things. You need to make sure you set up the legal structure of your business in a way that protects your business. One way to protect your start-up is by incorporating it. Incorporating your business will help protect your brand, increase the authority of your business names, protect your personal assets, and ensure the longevity of your new business,
#1 Protect Your Start-Ups Brand
If you want to protect the brand of your start-up, you need to be a business, not a sole proprietorship. By becoming a business, you protect the name of your business and your brand. When you are an officially registered and incorporated business, other businesses cannot register and try to use the same name that you have. If you feel that your name is unique and you want to protect others from poaching it, you need to be set up as a business, not as a freelancer doing their own thing.
#2 Increase Your Authority
Incorporating your business will allow you to add the letters "LLC" or the abbreviation "Inc" to the end of your business name. Adding these letters to the end of your start-up's name can give your start-up another level of authority. People tend to trust businesses that have "LLC" or "Inc." included in the name, and it gives your business name an extra degree of creditability, which is so important when starting a new business. Anything you can do to increase the credibility of your business can be extremely helpful.
#3 Protect Your Personal Assets
When you start a business, you don't want to put all your personal assets on the line. Unless you set up your new start-up as an official business, you are putting your personal assets up for grabs. If someone pursues legal action against your new business, and you are just established as a sole proprietorship and have not legally set up your business, they can pursue your personal assets. If you are set up legally as a business, your personal assets are protected from legal action.
Also, if your start-up doesn't succeed when not incorporated as a business, the liability for the debt will fall on you and your personal assets. Protect yourself and set up a legal business structure.
#4 Protect the Longevity of Your Business
When you are running a sole proprietorship, your business is based on you. If you were to die, your business would automatically be dissolved because your business is based on your life. When your business is set up as a legal entity on its own, your business will not be dissolved because you die or decide to walk away. Your business is a legal entity that will continue to exist on its own, regardless of your involvement in the business. That means your business could be sold or taken over by someone else if you were no longer able to run your business.
Don't forget to incorporate your start-up. Incorporating your start-up will allow you to protect the new brand you are building, increase the authority of your game, protect your personal assets, and protect the longevity of your new start-up. Reach out to a corporate lawyer to learn more.
Share21 April 2019
While I took a few business classes in college, I left early to start my own business. I thought I had the knowledge I needed to become a great business owner and was eager to start my business. Soon, I had a new business that was actually performing pretty well in sales. Unfortunately, I hadn't taken any law courses in college, and I soon realized I made a few mistakes when starting my business that could cause me some legal trouble. Thankfully, a great business lawyer helped me correct my mistakes before I had any legal problems, but I then decided to take those business law courses. I want to help business owners and anyone else who would like to learn more about the law by starting a blog where I will share what I have learned and will continue to learn. I hope I can help you!