Running your own business can be an exciting opportunity but has unique challenges. For your business’s protection and peace of mind, follow these tips to keep your business legally compliant from top to bottom.
IP protection
An excellent first step to protect your business interests is to apply for a trademark on any brand names and slogans that are critical assets to your business. Trademarks protect words, phrases, symbols, and other identifiers that distinguish your firm from other companies.
You can also obtain a copyright on any content you generate, such as software code, documentation, website content, or product images. Although things like patent filings and renewals aren’t legally required to run a business, keeping them in check can still help protect a company’s market share.
Company owners can use intellectual property management software to track all their trademarks, patents, and copyrights in one place. IP management software ensures they keep their IP portfolio in check and allows them to take action immediately if necessary.
Know the employment laws
Familiarize yourself with employment laws that affect your business. The regulations include discrimination and human resources laws like health insurance and family leave.
You may even find yourself needing to provide retirement plans and health coverage. To be sure your company is following the law, review your policies.
Knowing the rules will help you remain legally compliant by keeping you up to date on changes in employment law. Compliance also aids your employee retention efforts.
Prepare and organize paperwork
Regularly document your marketing strategies, business agreements, clients, accounts, expenses, and revenue with an accurate records management system. Make sure you have your business license, insurance policies, and other legal documents before starting a new venture.
Having organized paperwork enables you to avoid government penalties and fines for non-compliance. Keeping track of all financial records, including receipts, invoices, and checks, is also essential in preventing fraud and embezzlement.
Keep your taxes in check
Each year you’ll need to file taxes with the IRS. It’s a good idea for you to educate yourself about taxation in your jurisdiction to prepare all necessary documents accordingly.
There are severe consequences if you fail to pay your taxes on time or don’t report all of your income. An IRS audit or investigation might discover tax evasion and prove the same in court. It can result in a criminal conviction that involves paying huge fines and jail time.
Check your business’ standing
Finally, ensure that your business is in good standing with relevant government agencies. Confirm that your company has a satisfactory standing regarding licensing and employee records.
Reviewing your company’s status guarantees that you operate within the law and pay all required fees. It will allow you access to a broader range of financing options from banks.
Before you go
Keeping your business legally compliant is an essential step to protecting your business and yourself. Meeting your legal obligations will not only help you set up a strong foundation for future growth and success.
