Starting a new business in Texas can be a challenge, especially now that society is clearly in the digital age. New startups are common both online and as traditional physical brick-and-mortar operations. Some company setups are relatively simple, and other company beginnings can be saddled with a multitude of legalities. Whether or not a startup needs an attorney largely depends on the particular industry and the scope of business. However, it is always best to understand the legal requirements of running any business before opening your doors to customers.
The first concern business owners should have is what legal structure they want to use for their operation. While a sole proprietorship is relatively easy to open personally, partnerships often work best as limited liability companies that serve as pass-through entities for tax purposes. However, both “S” and “C” corporations have more legal concerns that will often require the expertise of a business law professional who can ensure all legalities are addressed from the very beginning.
Many startups will depend on contracts when conducting business, ranging from employee contracts to vendor and other business agreements. Even the hiring process can require input from a business law professional who can craft contracts for optimum protection for the company. Non-disclosure agreements and non-compete agreements are common in today’s gig economy, and many startups attempt to use the contractual employee model for procuring associates. Additionally, the company may also be required to enter into contract relationships with clients, and understanding what is being agreed to is vital.
These are just a few concerns that new business owners should consider before starting operations. Always plan ahead, and remember it can take up to five years for a business to develop successfully. The first few years are the most important, and being legally compliant is essential–consider contacting an attorney for guidance.