The information below is provided for general educational purposes and not as legal advice. Laws in areas in which we practice change continually and also vary from jurisdiction to jurisdiction. Therefore no visitor to our site should rely on any of the articles provided for legal advice, but should always consult their own attorney regarding legal matters.
STARTING A CREATIVE OR HIGH TECH ENTERPRISE
BY
ROB HASSETT
Background and Summary
This article first appeared in the January - February, 1994 issue of The Mulling Report, which is a newsletter that addresses topics relating to outplacement, and is a brief overview of issues an individual leaving an employer to start a new business should consider. (1 Page)
Because of corporate downsizing and for other reasons, many corporate employees are leaving the corporate world to start their own businesses. If you are starting your own company in an area involving intellectual property rights such as computer software, telecommunications, publishing, entertainment, or any business involving unique ideas or programs then, before starting your new business, you should do the following to establish a solid legal foundation:
1. Obtain legal advice concerning and avoid violating any legal rights of your present employer or any copyrights, trademark rights, patent rights or other rights of any other company or person.
2. Make sure you will own the proprietary (intellectual property) rights relating to your proposed services and products. Certain laws in this area are not rational. You cannot rely on "common sense."
3. Have written agreements with all partners or co-shareholders, investors, key employees, and subcontractors. People almost always interpret any ambiguities in their favor and, if an agreement is not in writing, there will almost certainly be ambiguities. This can lead to serious problems later.
4. Consider incorporating or taking other steps to avoid personal liability.
5. Comply with applicable tax, labor, unemployment insurance, worker's compensation and business licensing laws.
In addition to the above, the new entrepreneur may also need to prepare a business plan to obtain loans or investments, take steps to assure compliance with state and federal security laws relating to investors, and set up a structure to reduce applicable income taxes.
I recommend that you begin dealing with the above six (6) months before starting the new business. If you plan ahead, taking care of these matters will help you set up a solid foundation. Additionally, these matters will not be taking time away from production and sales efforts after you start.
The above information is provided for general educational purposes and not as legal advice. Laws in areas in which we practice change continually and also vary from jurisdiction to jurisdiction. Therefore no visitor to our site should rely on any of the articles provided for legal advice, but should always consult their own attorney regarding legal matters.
© 1994 Rob Hassett, Atlanta, Georgia. All Rights Reserved.