If you are about to start your own business, then you need to think carefully about how you decide to structure or organize this business. Organization means that your business is classified as a sole proprietorship, a limited liability company, or an individual doing business as. A limited liability company (LLC) is a good choice if your business will be owned by multiple people. There are also some legal advantages to the type of business. If you are unfamiliar with business organization or classification, keep reading to learn what the advantages are.
Many businesses will rely on brand identification for marketing purposes and to build a solid reputation in a community. Building a brand requires time and money to decide on a company name, logo, coloring, slogan, and a marketing plan. While you may think that your brand is specific to your business, other companies can use your positive image and copy your brand message.
Companies may do this as a way of pretending to be your business or they will trick individuals into thinking there is a relationship between your business and another. These things may be perfectly legal for another company to do if the ideas or designs are not protected by a patent, copyright, or a trademark. While the extent of the offense will dictate whether or not you can sue and stop the other business from infringing on your brand, you may be forced to prove that you were the one who initially came up with the idea.
For example, you start a business called Hank's Oranges that sells organic orange-based lotions and body products. You come up with an orange color scheme and a logo that features your name and a picture of an orange. After marketing heavily for a few months, another business opens called Hink's Orranges that sells non-organic body lotions at a cheaper price. Customers become confused and opt to purchase from the cheaper business. To stop Hink's from using your branding, you will need to prove that your business idea came first. This can be difficult.
However, if you decide to open Hank's Oranges as a limited liability company instead of a sole proprietorship, then you will go through a registration process when the LLC is initially set up. The registration will allow you to submit your business name, logo, and any other work that you feel is specific to your business. While trademarks, patents, and copyrights can be obtained after your business is started, LLC registration starts you off on the right foot business wise to make sure that your hard work is protected from day one.
Like the name suggests, an LLC business provides with you with limited liability. However, you may not be sure what this means. Basically, limited liability means that you will not be personally responsible for the debts owed by the business. This means that you will not need to pay back loans that were obtained solely for business purposes if the company folds.
While the reduced risk of personal financial collapse is one of the greatest benefits of forming an LLC, you should know that you are also protected from individuals suing you if an incident occurs within your business. This includes protection from any wrongdoing that is committed by one of your business partners or an employee.
For example, if one of your employees decides to spray organic orange lotion all over your floor as a joke and a customer then trips on the lotion, your business can be sued for the injuries incurred by the customer, but you and your partners cannot. Also, if one of your partners accidentally messes up the accounting for your business and taxes are not paid properly, then the business will need to pay the fines and back taxes to make up for the mistake. The only time that this limited liability does not protect you is if you willfully and purposefully break the law. For example, if you withhold taxes from employee paychecks and choose not to send that money to the IRS for some reason, then you will be held personally accountable for the money owed to the government.
For more information on registering your business as a limited liability company, check out a law firm like Carter & West Law.Share
10 February 2016
Getting hurt while on the job can leave you in pain and without an income for some time afterward, but that doesn't mean that you have to start going to the food banks to make ends meet. Working with a lawyer to file a personal injury case (if the injury was due to neglect by another party) is a great way to get compensation you deserve for lost work, and to get your medical bills paid so you don't have to pay out of pocket for high deductibles. This website was built with love to provide you with up-to-date information you can use when working with a lawyer, filing paperwork, and dealing with all of the hoops and red tape of your personal injury case. Hopefully you can find the support you need right here.