Establishing a small business can be a rewarding step for entrepreneurs, but it comes with numerous challenges. Owners have to manage their team, focus on their business relationships and ensure their company’s growth and profitability.
Many of the challenges that small businesses face are of a legal nature. Outlined below are some of the most common examples.
Changing the company structure
Initially, small businesses may start out as sole proprietorships. This means that there is a sole owner who often operates the business from personal bank accounts.
While this can be beneficial for side projects and small-scale businesses, companies can outgrow this system. There may come a time when a sole proprietorship needs to change structure and incorporate. While changing the legal structure of a company can be beneficial, it is not straightforward and there are numerous legal aspects to consider.
Finding a company headquarters
The majority of businesses have a headquarters. This is a physical location where business operations are overseen. Larger companies may even have several commercial premises throughout the state and country, and even overseas.
Investing in commercial real estate is a significant decision that has a legal element. Whether the business owner opts to lease commercial property or purchase, thorough due diligence should be carried out.
Protecting intellectual property
All businesses rely on having branding that stands out from the competition. This is what sets companies apart. The logos, slogans, patents, trademarks and copyrights of a business all need to be legally protected. Failure to do so could mean another entity stealing the branding and passing it off as their own.
These are just some of the key legal challenges a small company might face. There are several others. Seeking experienced guidance will help to protect your small business so that you can focus on continued growth and profitability.