When it comes to your business in Edmonton, you have a lot of things on your plate. You need to make sure you’re doing everything you can to keep your business running smoothly. Even if you are not a lawyer yourself, you need to know the basics of business law to minimize risks for your company and get out of sticky situations unscathed. So before you take on business matters, you need to understand the following areas of law and, even better, consult an Edmonton business lawyer.
Obtaining the Necessary Legal Documents
If you’re opening your e-commerce store or any business, you’ll need a state-issued license or permit to do so. This is true regardless of whether you intend to operate online or not. These requirements vary from state to state. Having a business license will allow you to legally operate your company and often shows that you have complied with certain regulations depending on your type of business.
Tax Laws
Tax laws are not just a list of rules to follow. They are also a collection of incentives designed to spur economic activity and reward taxpayers who behave in certain ways. As an entrepreneur, you need to know how those laws work and what they mean for your business. You’ll also want to be familiar with common deductions like the home office deduction and the self-employed health insurance deduction. Remember that not all tax-related advice is created equal — some are inaccurate or intentionally misleading. When in doubt, consult with an Edmonton business lawyer before making decisions about your business taxes.
Worker’s Compensation Laws
Business owners must understand what it means to be an employee and independent contractor. You need to understand the workers’ compensation law if you have employees. Every business owner needs to understand basic labor laws on minimum wage, overtime pay, and workers’ compensation. Depending on your location and size, you may also have to provide other types of benefits like health insurance, family leave, or vacation time.
Employment Law
If your small business hires employees, you need to understand all the relevant employment laws affecting your employees and your business itself. You’ll also need to know how to classify employees correctly so that you don’t get hit with back-payments and fines later. Get advice from an employment lawyer who can help set up your processes and policies to ensure compliance with all applicable laws.
Business Entity Formation
A business owner’s most obvious legal responsibility is to select the type of business entity. A company can be formed as a sole proprietorship, partnership, corporation, limited liability company (LLC), or other variation. Each form has its advantages and disadvantages regarding tax consequences, liability exposure, and flexibility. For instance, a corporation enjoys limited liability protection for its owners but is subject to double taxation when distributing profits to shareholders through dividends. A sole proprietorship offers the simplest start-up options for a small business owner. Still, it does not provide limited liability protection for the owner’s assets if the business is sued.
Business owners should consult with their attorney and accountant when choosing a business entity type. However, LLCs are the most popular choice for small businesses because they combine many of the best features of other entities into one package.
Trademark Security Problem
As you start to build your business, you will want to protect it. One of the first things most businesses do is create a trademark and a brand around their products and services. A trademark is a word, symbol, name, or product that distinguishes your business from other businesses. You should register your trademark with the United States Patent and Trademark Office (USPTO) to protect it.
If you are in a very competitive industry or have competitors trying to copy your brand, you should conduct regular trademark searches to ensure that no one else is using your mark or a similar one. If they are, you may need to take legal action against them. Trademarking your business name is important because it helps ensure that no one can use it without your permission. However, trademarks only protect certain things, and registering for one does not give you an automatic right over every similar item out there.
Protecting Assets
Assets can include real estate, equipment, and intellectual property such as trademarks and copyrights. Specific strategies need to be followed, such as forming an LLC or corporation and correctly titling assets to protect assets from creditors. This protects personal assets from creditors and protects the assets of other corporations or LLCs a person may own from creditors of other businesses they own.
Contracts
It’s easy to think of contracts as only the agreements you make with other businesses, such as vendors and perhaps partners. A contract is an agreement in which two parties exchange something, whether money, goods, or services. In fact, every time you hire an employee or sell a product, you’re entering into a contract. If you plan on regularly entering into contracts with other businesses or individuals as part of your operations, it’s important to understand how they work so you can avoid common problems like a breach of contract. Even if you’re not planning on making any types of contracts yourself, understanding the basics will help you spot issues when someone asks you to sign a contract for their services or products.
Privacy Issues
Privacy is a hot-button issue in the digital era, and you should take serious measures to protect your customers’ information. Many business owners mistakenly believe that they have total privacy regarding the information they send out over the Internet. However, it is important to understand that there are laws regarding the use of certain data. If you are collecting information from clients or customers through your website, you must disclose how you will use this information. In addition, if you plan on selling or sharing this information with other companies, you must let your clients and customers know about it. This is especially true if you collect credit card numbers or other sensitive information.
Bottom Line
Legal issues arise every day and in every business. What is important to recognize is that, as a business owner, you are ultimately responsible for your company, its actions, and its existence. So to protect your company, it’s best to educate yourself on the key areas of law that your company will encounter. Or even better, hire an Edmonton business lawyer to guide you through the process.
