Five Legal Tips for Small Businesses in 2020
If you are a startup or you are thinking about opening a small business in 2020, there are many things to consider. Before you open your doors to customers and clients, our Florida business attorney suggests that you take care of five important legal matters. Taking these steps can help avoid legal problems and issues in the future, so that you can focus your energy, time, and funds on building your new business.
Five Legal Steps You Need to Take for Your Small Business
- Form a Separate Legal Entity
Invest the time and money necessary to consult a Florida business law attorney about forming a legal entity for your small business. Your choice of legal entity can significantly impact numerous areas of your business, including taxation, personal liability, and ease of daily operations. The choice of a legal entity can also significantly impact your options for soliciting investors, adding owners, and seeking funding or obtaining loans.
- Set Up an Accounting System
Choose an accounting system immediately and set up your books and records. You need to maintain accurate books and records for accounting and tax purposes. You will need these records if you want to attract investors and obtain loans. Also, a good accounting system helps you maintain separation between your business and your personal finances, which is essential to maintain protection from personal liability for business debts and obligations.
- Develop Written Contracts
Insist on written contracts in all areas of your business. A well-written contract protects your business and reduces the chance of disputes and lawsuits. A Coral Springs business attorney can draft contracts for employees, vendors, suppliers, customers, clients, and leases. Your attorney can also review and negotiate contracts for your business.
- Protect Your Intellectual Property
Before hiring employees, develop strict policies regarding intellectual property. Obtain trademarks and patents immediately. Trade secrets should be held closely. Only individuals with an absolute need for this information should have access to the information. Be vigilant about using nondisclosure agreements and confidentiality agreements with employees, vendors, contractors, and other parties who require access to information regarding your intellectual property or trade secrets.
- Protect Personal Information – Data Security
If you collect any personal information, you need to have policies and procedures for protecting this information. Numerous federal and state laws require companies to protect personal information collected from individuals. If you have customers or clients overseas, you could also be subject to international privacy laws, including the General Data Protection Regulation (GDPR) which applies to all citizens within the European Union.
Contact Matthew Fornaro, P.A. to Discuss Legal Services for Your Small Business
Our legal team assists business owners in business formation, contracts, litigation, acquisitions, and all other matters related to forming and operating a business.
Contact our office by calling 954-324-3651 or contact us online to schedule a consultation with an experienced Florida business law attorney.