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The Legalities of Starting a Business Post-COVID-19
Words Dorothy Adu-Mfum
Many businesses globally have had to restructure or dissolve as a result of the pandemic while others have expanded and had their best year in business yet. The pandemic may be a nightmare for many, however it is also the perfect time for innovation, the birth of new ideas and ways of providing services. Nonetheless the fact remains that whatever end on the spectrum you find yourself, all businesses will have to adapt the way they conduct their services in light of new regulations and ethical responsibilities. However, the fundamentals in starting a business remain the same. Founder of Law City, Dorothy Adu-Mfum provides you with five legal tips to help you navigate starting a business post-COVID-19.
Register your business
So, you have come up with a great business plan, researched the name of your business for availability, done your market research with the new regulations in mind and decided it is time to start your business: but what happens next? It is time for you to register your business. In order to do this, you must figure out what business structure will work best for your business. In deciding this, it is important to consider to what extent you want to take on personal legal liability, tax implications as well as ongoing costs and administration. The most chosen structures are sole traders, Partnerships, limited liability partnerships and a limited liability company. Each structure will have varied levels of personal liability, tax implications, cost and administration requirements.
Get your legal documents in order
Legal documents range from employee and supplier contracts to Non-Disclosure Agreements, Shareholder Agreements, By Laws, Operating Agreements, Partnership Agreements, Payment Agreements and more. This is a non-exhaustive list of documents and varies based on the business structure chosen. However, these documents will not only set out the companies’ terms of trading but will also act as protection in the event of dispute.
Protect your intellectual property
A great idea is likely to get copied at any stage. Before telling the world how amazing your idea is, protect it. Ideas come in many shapes and forms but will fit under the umbrella of intellectual property. Intellectual property includes your designs (shape and configuration of objects), patents (rights granted for an invention), copyrights (applies to recorder work such as music, art, literary work, typographical arrangements and recordings) and trademarks (any physical sign or name that is capable of distinguishing goods or services). The only way to legally prevent this is by identifying what your idea falls under and registering it accordingly.
Get insurance
It is important for every company to have insurance, however for a start-up that is still figuring out how to conduct its business and cater to customer needs it is paramount. One thing the pandemic has shown the world is that things happen out of our control that can drastically disrupt a business. A business will survive based on how prepared it is for a crisis. Insurance is a business’s safety net against potential risks, changes and mistakes. There are several insurance providers providing a variety of insurance options, do the research and find out which one works best for your business model.
Understand tax implications
It is wise to seek the assistance of a lawyer during the process of setting up your business, however unless you are a tax professional, it is important to seek specialist advice to ensure that you are meeting your tax obligations.
