Most Common Legal Challenges Start-Up Companies Face Today

If yours is a start-up company in the LA area, you may face some of the top legal challenges many owners of new businesses face. Whether to incorporate or form an LLC, intellectual property assets, and agreements are a few of the complex issues many entrepreneurs find a challenge. With the help of a seasoned Los Angeles business attorney, making the right decisions for your company is easier – and may even help you avoid litigation in the future.

Corporate issues often include which option to choose in terms of a corporate entity; is yours an “S” or “C” corporation, or would an LLC (limited liability company) be the right option? Certain options offer tax advantages. In addition, you may have questions about where to incorporate, your home state, Delaware, or Nevada. An experienced lawyer can ensure that all documentation is complete, that filings are current, and paperwork in order so that the company/business owner is not potentially exposed to personal liability.

IP, or intellectual property assets, are another area of concern for start-up companies. The topics of copyrights, trademarks, patents, and trade secrets are often completely foreign to entrepreneurs, particularly those who have never started a company or corporation before.

Copyright protection continues for more than 100 years, and is an inexpensive and simple process that essentially protects your original work or “expression,” although it provides very narrow protection.

Patents protect inventions, while trademarks protect brand elements including logos, phrases, words, and other things that help companies develop a memorable, distinctive brand.

The protection of formulas, patterns, designs, or even processes is known as trade secrets and involves confidential information that companies typically do not want competitors or in some cases even employees to discover, as this puts the company at risk of having these formulas or processes stolen and used by industry competitors.

All of these things can be challenging for start-ups, and while the issues are important, timely filing of IP assets is crucial. Many entrepreneurs are simply not aware that they must file for protection in order for their processes, copyrights, logos, slogans, or other assets to be protected from infringement or even theft.

In starting a business, there are all matter of agreements or contracts that must be drawn up and signed, depending on your industry. From franchising or employment agreements to licensing or partnership agreements and licensing for technological assets such as software, agreements/contracts that are properly formed and complete are essential in protecting every aspect of your business. In order to limit your litigation risk, it is highly recommended that all agreements and contracts are reviewed by an experienced attorney prior to signing.

Ultimately, it is important for start-ups to retain the services of a talented Los Angeles business attorney from the very beginning, to ensure all is in order, so that risks are kept to a minimum. There are countless “tasks” entrepreneurs must face, and without legal guidance, it is easy to put yourself and your business at risk. Starting a business is a complex process that requires guidance, support, and expertise in order to succeed.

Visit Spotora Law for more information about our firm!



This entry was posted on Tuesday, January 20th, 2015 at 7:08 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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