Starting a business? Make sure that you are well versed with all the main laws that surround your entrepreneurial venture. At the offset of any business venture, aside from financial advice, it is of utmost importance that the entrepreneur is at the receiving end of excellent legal advice as well, since these are two very crucial foundational aspects of any enterprise.
While hiring financial and legal advisors may be a great idea, it may not be a viable option for small enterprises and new enterprises, since the cost of legal and financial advice from professionals might be a bit overwhelming. However, legal issues and knowledge, especially around insurance, real estate, taxes, intellectual property, etc. must be given priority by all entrepreneurs. The following are four laws that any entrepreneur must know.
Intellectual Property Laws
Intellectual property refers to those ideas that are considered governed by ownership. In other words, these ideas cannot be replicated, borrowed, or used without permission or authorization from the creator or owner. Violation of intellectual property rights is considered a punishable offense by law.
Intellectual property is usually protected by copyright, patent, and trademark. Copyright laws are those that are meant to protect intellectual property from being plagiarized or copied unlawfully. For instance, books, scholarly articles, any other published information is usually copyrighted to protect the author and/or publisher’s ownership over the intellectual property. However, if this intellectual property is released under a creative commons domain, then the copyright laws are not entirely applicable.
Patents are usually for protecting things, such as machinery, software, electronic goods and so on. It goes without saying that those items that the patent seeks to protect are considered novel inventions. The trademark is another important aspect of intellectual property. A trademark generally protects brand identity and interests. Nevertheless, trademark protection only extends within the scope of a single business field.
Real Estate Laws
This is another legal aspect that every entrepreneur must be aware of. To validate the purchase of any real estate, every entrepreneur must get a quitclaim deed and/or a warranty deed. The quitclaim deed is what legally validates the transfer of property from the old owner to the new. The warranty deed is what makes the entrepreneur, the new owner, free of any encumbrances.
Another important set of laws to be aware of pertain to zoning considerations. Different regions and within them, commercial and residential zones, all have their own requirements when it comes to property related transactions and constructions. These must be adhered to accurately to avoid future legal problems for the entrepreneur.
One of the primary financial concerns of any entrepreneur would be regarding tax payment and rebate. Any accidental tax payment mishap on the part of the entrepreneur can lead to severe penalization. Therefore, it is highly advisable to get familiarized with the tax laws. Also, take the help of reliable and professional financial consultants to ensure that payments and claims are all made to the satisfaction of the entrepreneur and the law.
Insurance is often mistaken to be a financial liability but it is, in fact, extremely beneficial to enterprises. Entrepreneurs must take into consideration a number of insurance categories for their business. Some of the important insurance policies that firms must invest in include property insurance to protect the office and all the equipment, health insurance, workers compensation insurance in the event that an employee is injured while on the job, and business interruption insurance.
Knowledge of the laws surrounding insurance policies could prove highly beneficial for the entrepreneur.
Confident entrepreneurship comes from a strong legal foundation, which better equips entrepreneurs to run their business with peace of mind and without legal problems.
About the Author: Thomas Green writes articles in relation to law. In this article, he describes a few laws that entrepreneurs should be aware of and encourages continued study with a Masters Degree in Law.