When starting any kind of business, there are key legal considerations that cannot be ignored. Reaching a basic understanding of your legal rights and obligations is essential to building a healthy, successful business, and if the legal requirements of your industry are significant you may find huge value in hiring a legal expert to help.
What are the main legal considerations when starting a new business?
- How am I going to structure my business? From day one, business owners must make important legal decisions that may have ramifications down the line. The first is how they structure their business. Some businesses are safe to operate under nothing more than an ABN, but if you have valuable assets, business partners or significant risk exposure you may need extra protection through a trust or corporate entity.
- Do I know the regulatory and compliance requirements for my industry? Many industries have mandatory reporting, special licenses and permits and other regulations to protect consumers and ensure good business practices. It is essential that any new business owner researches their particular industry thoroughly or engages a qualified legal professional who is experienced in their area.
- If my business fails, do I know how to handle insolvency? The unfortunate reality is that many businesses fail, but good business founders have contingency plans in the event they cannot pay their existing debts. It is good practice to come to a solid understanding of insolvency law and what your options are if your business cannot meet its obligations, but if you are currently unable to pay your debts it is essential you seek immediate legal advice.
- If I come into conflict with another party, how will I resolve the dispute? Many companies these days favour mediation and other alternative dispute resolution techniques, as they save on court costs and legal fees. Regardless, establishing a relationship with a lawyer who specialises in litigation and dispute resolution will give you a strong ally to go to if you
