The Importance of Timeliness When Starting a Business
For the majority of entrepreneurs and new business owners, time is a precious commodity. Finding time – and managing an existing schedule – is a challenge. When launching a new business, however, it is critically important to follow a proper timeline. Failure to execute the new business start-up steps in the correct order can cost a fledgling enterprise much-needed funds. More importantly, waiting until the last minute to handle important tasks can seriously jeopardize a business’s likelihood of success.
By working with an experienced business attorney, a new business owner can stop worrying about the legal details and focus on running their business. The following are some of the initial steps that should not be left until the last minute:
Creating a Unique Business Name
There are several considerations that contribute to choosing a business name. For a variety of reasons, business owners must choose a name that is not too similar to an existing Arizona business name. The name should not infringe on an existing federal trademark. Ideally, it should also be available as an Internet domain.
Separating Personal and Business Accounts
Many first-time business owners make the mistake of relying on personal credit to launch a new business. Understandably, they do not always have access to business credit as a means of funding a new business. By pledging personal assets, however, they expose themselves to business creditors. A business attorney can help a new business owner find a solution that does not put the business owner’s personal credit and assets at risk.
Planning for Intellectual Property
Copyright and trademark law is complex. Business owners must ensure they do not violate other businesses’ work, while at the same time guaranteeing they protect their own efforts. This is where the help and knowledge of an experienced business attorney is invaluable.
Drafting Business Contracts
Many business owners are tempted to create their own contracts or rely on agreements they pull from the Internet. Although this may initially seem like a money-saving step, it can be a critical and costly mistake in the long run. Arizona courts construe ambiguous contracts against the drafting party. Harford v. National Life & Casualty Ins. Co. (1956), 81 Ariz. 43, 45, 299 P.2d 635, 637; see also, Sears Roebuck and Co. v. Avery (2004), 593 S.E.2d 424 (North Carolina applying Arizona law). Business owners who create confusing, misleading, or simply incomplete contracts just to save a little money could end up losing a significant amount of funds should a dispute later develop.
© 2014 Matthew W. Harrison and Harrison Law, PLLC All Rights Reserved
This website has been prepared by Harrison Law, PLLC for informational purposes only and does not, and is not intended to, constitute legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice from an attorney licensed in your jurisdiction.