Common Issues that Arise when Starting a Small Business
Starting a business is an incredibly exciting adventure. However, it involves more than just an entrepreneurial spirit and a great idea. There are many common issues that can arise before and after you have opened your doors. Below, one of our Utah business law attorneys outlines what these are and how to avoid them.
Selecting the Right Business Structure
Choosing the right structure for your business affects your tax obligations, liability, and capacity to attract investors. For example, sole proprietorships can be more straightforward and can give you direct control over all of your business operations, but we rarely suggest this structure. Sole proprietorships do not have the same liability protection as corporations or LLCs.
The type of business structure you choose can have serious and final consequences. It is critical that you consult with a Utah business law attorney who can help you determine which type is right for you.
Cash Flow Management
One of the most important factors that impact the survival and growth of any small business is cash flow management. According to a report by the U.S. Bank, 82 percent of failed businesses were caused by improper cash flow management or a failure to understand the dynamics of cash flow.
To avoid the pitfalls of poor finance management, strong financial practices are crucial. These can include securing suitable financing options, regular financial assessments, and detailed bookkeeping. These practices can ensure that business owners have a thorough understanding of their financial situation so they can plan accordingly to meet their growth objectives and operational needs.
Compliance with Laws and Regulations
As a small business owner, it is critical that you understand the many laws you must comply with, from employment laws to zoning laws. For example, Utah follows the minimum wage outlined in the federal Fair Labor Standards Act. If you fail to comply with this law, you will face significant legal challenges and high fines. OSHA regulations also apply to a number of businesses in certain industries as well, and compliance with these is imperative. A Utah business law attorney can advise on the laws and regulations applicable to your business and ensure you are in compliance with them.
Protection for Intellectual Property
Your business largely relies on your intellectual property. These are the things you have created, invented, or developed as a result of your intellectual activity. For example, the recipes a restaurant develops would be considered intellectual property. It is important to protect your intellectual property just as would any other asset. Copyrights, trademarks, trade secrets, and patents are a few ways to protect this type of property.
Contact Our Business Law Attorneys in Utah when Starting Your Business
Starting a business is exciting, but it is important not to overlook the practicalities and logistics involved. At AGS Law, our Utah business law attorneys can advise on the type of structure to choose, ensure you are compliant, and advise on the protections you need for all of your assets. Contact us to schedule a consultation with one of our attorneys and get the help you need when starting your business.
Sources:
dol.gov/agencies/whd/flsa
utah.gov/business/starting/structure.html
