3 people in conference. Text "legal issues to consider when starting a business"

Top Legal Issues to Consider When Starting a Business

If you are planning to start a business, it’s important to spend some time researching the legal aspects of your given industry. In the United States there are legal regulations and restrictions for all businesses. Violation of business laws can result in a fine, closure of business, a jail sentence or other consequences. To ensure that you start off on the right note, here are the top five legal issues to consider when you start a business.

Business Structure

Before anything else, you should decide on the business structure. Every business is different so you’ll want to determine the most suitable business structure for your purpose. Do you want to register your business as a corporation, S-corporation, partnership, limited partnership, limited liability company or sole-proprietorship? Each form of business structure will provide a different tax structure so you need to find out which is the most beneficial for you and your business. It’s important to note that the structure will determine your business’ liability issues.

Business Name

Your customers will come to identify your products and services with your business name so choose wisely. Coming up with an original, catchy business name is already a difficult task but you will also have to check to see if that same name already belongs to another company. After you have decided on your business name, conduct a name search. In the event that your business name is not used by another business, it means that you have the right to reserve the name for 120 days. During this time, you can prepare the articles of organization, articles of corporation or a partnership agreement, whichever suits your case.

Business Licenses

To operate your business legally, you will need to get a business license as well as tax registration. Other licenses or permits may also be required, depending on the nature of your business. If you are operating a food business, you are required to get a retail food license, bakery license, meat license, non-alcoholic beverage license, dairy operator’s license, bakery distributor license or domestic kitchen bakery license, relevant to the scope of your business. Check with your local authorities to find out the types of licenses needed to run your business.

Non-Disclosure Agreements

Confidentiality is an important aspect of business relationships. Whether it’s a contract with your suppliers or an intricate financial arrangement, non-disclosure agreements can be used to protect your business. In your dealings with these outside companies, you will be sharing information which may be sensitive or integral to the success of your project. For this reason, it’s important to get these companies to sign non-disclosure agreements.


Make it a point to check that the location of your business is in the proper zone. Some people make the mistake of assuming that the zoning is appropriate because similar businesses are operating there. Remember that the business may have received an exemption to operate at that location or the zoning laws may have changed. Again, it’s best to check with the local authorities.

Starting your very own business at times becomes difficult. Since you are accountable for the day to day operations, you want to be fully informed and ready to any legal issues. This includes brand promotion, handling customer complaints, creating marketing strategies, looking into cash flow and any legal formalities. Since there are a number of situations where you may require legal advice especially on legal issues for businesses, it is essential that you hire a business lawyer. This becomes even more crucial as your business expands. With you managing a variety of situations on day to day basis, hiring business lawyer who can handle the legal proceedings for you is a smart use of your resources.

If you have a business, family, or criminal matter that needs the attention of a lawyer, consider the legal services of the Halbert Law Office. We will provide you with trusted and superior legal services in Eastern Arkansas, Brinkley, Forrest City, Wynne, Marianna, Clarendon and Marvell, AR Areas.