Legal issues to consider when starting a business

Starting a new business venture can be a challenging journey. Not only are there a sea of managerial decisions to determine but there’s also many legal implications to consider. By covering the necessary legal requirements, you can avoid potential run-ins with the law in the future. The sooner you are able to take care of these issues, the sooner you are able to hone in on the products and services that fuel your business goals. Listed are some of the most important legal steps to consider. Although not all-encompassing, these steps are key in setting up a successful business.


  • Determine a business name with consideration for the rights of an already existing business. With a free search through the business named registered with the Secretary of State as well as a trademark search, you can determine if your name is available among all fifty states. A comprehensive search into state and local databases with also prove useful in case someone’s trademark has yet to be registered with the U.S. Patent and Trademark Office.
  • Begin learning about employee laws. Whether it be through research or time with a professional, you should take the time to understand the legal implications that hiring an employee entails. This includes but is not limited to anti-discrimination laws, worker’s compensation rules, OSHA regulations, wage requirements, etc.
  • Decide on the proper business structure. This is a crucial step in that it will be a large factor in determining personal liability, startup costs, tax payments, etc. Typically, the majority of small businesses start as sole proprietorships or partnerships and eventually expand to either limited liability companies or corporations as business grows. This is because they offer more sufficient liability protection compared to sole proprietorships / partnerships. After researching and deciding on the proper structure for your business, you’ll need to officially appoint it through your secretary of state.
  • Get your employer identification number (EIN). (Sole proprietorships and single-member LLCs are exempt). Without an employer identification number, you won’t be able to open a corporate bank account or properly file business tax returns. An EIN can be requested from free from the IRS through an application on their website. Make sure to keep a signed copy of the application somewhere safe and accessible.


Regardless of how busy startup life can become, allowing for time to address legal matters and obligations with a business lawyer in Arlington, TX is a necessary step toward the foundation of your business. That way, there will be one less obstacle to face in reaching your venute objectives.


Thanks to Brandy Austin Law Firm, PLLC for their insight into business law and starting a business.