When Starting a new venture, there are a number of initial and standard legal requirements entrepreneurs should consider before ramping up their business operations.
The purpose of carefully examining these topics and acting upon them accordingly is to accumulate as much protection for your business operations, company’s assets, and partners as is reasonably possible.
Here we examine what legal needs entrepreneurs should consider first:
Allows your business to operate as a legally recognized entity within your respective country, and locality. And, take advantage of there respective legal protections available.
Allows your business to operate in a specific state and locality, sector, and industry. It can vary greatly depending on your industry, market and operative environment.
Represents an agreement between the trustees, principle investors, and the management team of your company to lead the operations of your business. The bond is required to provide protection to your business against losses due to fraud, theft, forgery or dishonesty.
Permits & Licenses:
These can vary depending on your type of business and the market you are servicing.
Permit requirements can include:
A. Business Permit & Certificates specific to your industry.
B. Federal & State Sales Tax Licenses.
(State, fire, air & water pollution, and sign permits, may apply for our business, or may not necessary at the earliest stages of our operations.)
Insurance coverage is an important means of protecting your business against unforeseen problems, lawsuits, or natural disasters.
The following represent insurance products that are typically required for businesses at different stages:
Insurance for Initial Stages:
- General Liability
- Property Insurance
- Business Interruption
- Workers Compensation
Insurance for Growth Stages:
- Errors & Omissions Liability
- Network Security Liability
- Directors & Officers Liability
- Global Liability & Crime
Another important point to consider about insurance is that many outside business services that you may seek to form partnerships with will require your business to obtain general, and/or specific forms of insurance in order to work with you.
Health & Workplace or Environment Regulations:
These regulations are important for businesses operating in the health care, life science, natural resource extraction, farming & fishing, and technology industries.
Important for companies who operate in, or service, large systemic industries like energy, infrastructure, construction, etc..
Zoning & Building Code Requirements:
Relevant for companies who need physical locations to produce and sell their goods and services. Entrepreneurs should make sure their companies comply with specific local zoning and building requirements. The last thing you want to have happen to your business is the locality shutting down your operations for specific violations, which can sometimes take months to remedy.
Be sure to pay to comply upfront, otherwise you risk spending several degrees of magnitude more on becoming compliant, on top any potential lawsuits that typically become attached to violations.
Obtaining the right licenses, complying with regulations, and securing insurance protections can dramatically affect the future economic outcome of your business, and for the better.
Entrepreneurs should not overlook on this topic.
Make sure you comply with all your local, state, and federal authorities. The whole point of these regulations and affiliated services is to protect your business from potential legal & economic harm.
The business regulatory environment is structured to create an even playing field and generally wants your business to succeed, so don’t fight it.
Lastly, complying with the regulations of your industry is a great way to promote your company as an active and positive member of the outside community.
Business leaders should want their company to positively represent their industry and become a model for other business to look up to. Compliance with the regulatory environment and local government is often rewarded with positive social activism by the outside community and loyalty from your customer base.
Companies who fail to comply with the laws of the land are often chastised by society and discriminated against by their customers.
Too much bad publicity and your customers will turn to alternatives for the same goods and services you offer.
Ultimately, embracing the rules of engagement can position your company as a force of change capable of influencing regulatory reform to better serve your business needs and improve the competitive environment.
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