Common Issues When Starting a Business in Utah

If you have a good idea and an entrepreneurial spirit, you may have considered starting a business. As you begin the venture, it is critical that you understand the legal challenges that may stand in your way of success. Below, one of our Utah business law attorneys outlines the most common issues entrepreneurs face when starting a business.

Selecting the Right Business Structure 

Choosing the right business structure will profoundly impact your tax obligations, liability, and ability to attract investors. For instance, although a sole proprietorship may offer direct control and simplicity, it does not provide the same protection from liability as a corporation or limited liability company (LLC). The legal structure of your business has significant financial and legal consequences so it is important to consult with a legal professional who can help you make the best decision for your business.

Managing Cash Flow 

Managing cash flow effectively is critical to the survival and growth of any business. According to the U.S. Bank, 82 percent of businesses fail due to poor cash flow management or failing to understand the dynamics of cash flow. To avoid this common pitfall, it is important that businesses have effective financial practices such as regular financial assessments, detailed bookkeeping, and securing suitable financing options in advance.

Staying Compliant

It is critical that all small businesses comply with a number of regulations and laws, from employment laws to zoning laws. For instance, the Fair Labor Standards Act (FLSA) governs hour and wage standards on the federal level. Businesses that do not comply can face legal challenges and high fines. A business law attorney can help small business owners comply with these regulations.

Safeguarding Intellectual Property 

Protecting intellectual property is critical to safeguard your proprietary information and your brand. Intellectual property includes trade secrets, patents, copyrights, and trademarks. If you do not have proper protection, competitors may infringe upon your intellectual property, leaving your business vulnerable. A business law attorney can help you file patents, register trademarks, and take other measures that can protect your intellectual property.

Recruiting Skilled Employees 

Locating and attracting talented workers is important for sustainability and growth. Another challenge lies with creating an environment that motivates workers and makes them want to stay with the company. This involves creating a positive corporate culture, offering competitive compensation packages, and having a thorough understanding of employment laws.

Our Business Law Attorneys in Utah Can Help You Avoid These Issues

The above issues are not only challenges, but they are also an opportunity for a business to grow. By being proactive, having the right resources, and obtaining legal advice from a Utah business law attorney, business owners can create the strong foundation their business needs. At AGS Law, our experienced attorneys can provide the personalized guidance that is right for your situation. Call us today at 801-477-6144 or chat with us online to schedule a consultation with one of our attorneys and to learn more about how we can help your business.

Source:

dol.gov/agencies/whd/flsa