For many entrepreneurs, starting a new business means juggling so many tasks simultaneously – perfecting your business plan, working out your financial plan, seeking finds, etc. Unfortunately, most entrepreneurs end up overlooking or forgetting the legal requirements they need to meet. Moreover, failing to meet such obligations can result in fines or other repercussions, which may affect your business. So, are you starting a business? Here are some legal considerations you need to be aware of. 

  • Choosing your business name

If you want to avoid running into legal problems along the way, you need to choose a business name that is unique to you. If your business name is too similar or an exact copy of an already existing company, you could be liable for having deceptive intentions, like pretending to be an existing company. This could result in expensive legal issues and battles.  Therefore, before you choose your business name, take the time to find out if a similar one exists in your location. The same principle applies to creating and using company logos and trademarks. 

  • The legal structure of your business

When setting up your business, it is essential to consider the structure of your business. You can choose between being a sole trader, creating a limited liability partnership, setting up a limited company, or partnership. That said, you may pick one structure over another due to issues concerning the confidentiality of your business information, ease of administration, tax issues, and liability to third parties. The structure you decide on influences the legal structure of your business. Therefore, you should be sure to select one that suits the nature of your business.

  • Personnel

Do you want to engage an employee, a consultant, or a person in some other capacity? An employee will work under a legal contract of employment, agreeing to serve the employee. A consultant will offer specific services based on a contractual agreement, but not as a company worker. 

When recruiting, you need to factor in your location, hiring cost, minimum wage, employment law claims, etc. If you want to hire outside your country, you might also want to factor in work permits and other legal requirements for foreign workers. Companies such as Origin Legal are experienced in finding and placing candidates in legal positions offshore, considering the various employee requirements for working in different countries.

  • Industry-specific licensing

Some industries require licensing from the relevant authorities before you can start operation. That is aside from the usual business registration and required permits. Some examples include street traders, hotels, food outlets, hairdressers, etc. 

  • Employers liability insurance 

Employers’ liability insurance is one of the legal requirements you need to know when setting up a business with at least one employee. The law in the UK requires you have at least £5 million minimum cover level. That said, failing to do this means that your business will attract a fine of up to £2,500 for each day you don’t have insurance.