Legal Nuggets for Businesses

Mention legal regulations to a businessperson and you will probably see their eyes glaze over. One can hardly blame them given the complexities of the subject. That being said, here are a few legal nuggets you should know.

1. Shareholders vs Members – In a limited liability company, there are no shareholders. They are called members instead.

2. Legality of NCA – Many businesses ask their employees to sign non-compete agreements, also known as NCAs. Keep in mind they are illegal in some states!

3. Identity Theft Tip – Never click a link to a site based on an email you randomly received even if the company is well known to you. Instead, go to a search engine and access the site that way.

4. Business and Friends – When starting a business, there is a tendency to get friends involved. Generally, this is a bad idea. Different views can lead to the end of friendships.

5. Financing New Businesses – Starting a business usually requires money. Many people make the mistake of first offering ownership interests in exchange for cash. Use this as a last resort.

6. Common Law Copyright – When you create an artistic work such as a book or music, you automatically are granted copyright. If some infringes on your copyright, however, you must have registered it with the Copyright Office to get damages.

7. Website Copyright Issues – Many businesses need websites and yours probably does as well. If you use an outside party to create it, make sure they transfer copyright to you for the site.

8. Business Failure Rates – Roughly 80 percent of businesses fail in the first two years. Plan as much as you can before starting the business to increase your chances of making it.

9. Going Ecommerce? – Most startups don’t think about going online before opening a brick and mortar office or shop. If you can get the hang of web design, it is much cheaper to start online.

10. Discovery in Lawsuits – During a lawsuit, much of the time will be spent on discovery. Discovery is the process of learning information through depositions, document requests and so on.

As with all legal information, keep in mind the above may or may not apply to your specific situation. Much of the law is factually oriented, meaning it applies in different ways to different situations.

Your resource for attorney information is FindanAttorneyforme.com.
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