5 Biggest Legal Mistakes Startups Should Avoid
Not Forming A Limited Liability Entity: One of the very first decisions that founders must make is to specify and register what legal form the business has to operate. But most of the founders fail to look into these legal aspects of the business and often result in incurring higher taxes and become subject to significant liabilities. By registering as LLC or a corporation, a startup firm can avoid irregularities in liabilities, protect personal assets as well as stop the process of the business getting sued or bankrupt.
Failing To Protect Your Intellectual Property: Intellectual property is one of the most valuable assets a company owns. While developing a unique product, technology, or service, founders need to always consider the appropriate steps to protect the intellectual property, which they have created. Most often than not founders go by this perception that intellectual property is expensive legal process and overlook its importance while setting up a new firm. If the founders fail to protect the intellectual property rights it is itself giving the opportunity for third parties to take advantage of it.
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