Legal issues to consider when starting a business

22 Apr, 2022

On Behalf of Mack & Mack Attorneys | business law

For many business-oriented folks, building a startup is a dream worth pursuing. Nothing compares to the pride and potential profits of establishing an independent venture.

Forming a business the wrong way presents peril. Lawsuits and financial penalties are bound to surface when not set up correctly. Every issue demands proper attention.


No enterprise is official without taking a legal form. This daunting decision impacts critical variables such as taxes and liability. Choices include a sole proprietorship, S-corporation, limited liability company, or a limited partnership. It is vital to compare the benefits and disadvantages of each option.


A desirable handle is essential for developing a recognizable brand. Picking a name already in use by another business is an expensive error to undo. Entrepreneurs should thoroughly check they are free to use the moniker they want.


Corporations have to get permits and other forms of mandatory authorization. Without them, fines may be forthcoming. Restaurants need a liquor license to serve alcohol. Companies with animals should seek permission from the U.S. Department of Agriculture. Those moving goods overseas need to get approval from the Federal Maritime Commission. Every commercial body must have proper documentation on file or suffer the consequences.


Certain businesses are not allowable in specific locations. Zoning boards sometimes threaten shutdowns when they detect trading in forbidden areas. The result of violating their rules is a costly and inconvenient situation.

Every company needs to cover each of its legal bases from the start. Without every element receiving proper consideration, trouble is sure to follow.

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