General Counsel, P.C.

  • Practice Areas
    • Business Law
      • Business Breakups in Virginia
      • Contract Management
      • Minority Shareholder Protections
      • Emerging Companies
      • Entity Formation
      • Foreign Companies Entering U.S. Market
      • Real Estate and Leases
      • Starting a Business, Licensing & Compliance
      • Registered Agent Services
      • Succession Planning for Business Owners
      • Tax Law Matters
      • Charitable Solicitation Practice Group
      • Intellectual Property
        • Trade Secrets
        • Copyright
        • Trademark
    • Employment Law
      • Employment Documentation
        • Building Your Cornerstone
        • Employee Document Vault
        • Employee Handbook Tuneup Services
        • Guidelines for Hiring or Firing Employees
        • Separation Agreements
      • Drug Testing
        • Drug Testing Your Workforce – Best Practices
        • Laws Affecting Drug Testing Policies
      • Regulatory Issues
        • VA, MD, DC, Rights & Obligations
        • Age Discrimination
        • Americans with Disabilities Act
        • At-Will Employment
        • Fair Labor Standards Act
        • Family Medical Leave Act
        • Pregnancy Discrimination Act
        • Title VII
      • Non-Competition Agreements
        • District of Columbia
        • Maryland
        • Virginia
      • For Employers of Uniformed Services Members
      • Employer Considerations For Government Contractors
      • For Non-Profits
    • Family Law
      • Divorce
        • Collaborative Divorce
        • Grounds for Divorce
          • Fourth Level Menu Sample
        • High Net Divorce
        • Same Sex Divorce
        • Military Divorce
        • Uncontested Divorce
        • Litigation vs. Alternative Dispute Resolution in Divorce
        • Post-Divorce Enforcement and Appeals
        • Alimony and Spousal Support
        • Child Custody
        • Child Support
        • Filing for Divorce in Virginia
        • Divorce Security Clearance
      • Property Division
      • Alimony and Spousal Support
      • Child Support
      • Child Custody and Visitation
      • Marital Agreements
      • International Family Law
      • Domestic Violence and Protective Orders
      • Co-Parenting in Virginia
    • Government Contracts
      • Bid Protests
      • Government Contract Claims and Appeals
      • Getting Government Contracts: Small Business Certification Services
        • 8(a) Small Business
        • HUBZone Small Business
        • SDVOSB Program
        • Veteran-Owned Small Business
        • Women-Owned Small Business
    • Litigation
      • Arbitration, Mediation & Alternative Dispute Resolution Attorneys
      • Commercial & Business Litigation
      • Defamation
      • Employment Disputes
      • Government Contracting Disputes
      • Intellectual Property Disputes
      • Local Counsel
      • Pre-Litigation
    • Estate Planning
      • Estate Planning FAQs
      • Trusts
      • Wills
      • Families With Children
      • Business Succession Planning
      • Asset Protection Planning
      • Celebrity Estate Planning Mistakes
      • Legal Business Contingency Plans
      • Become a Referral Partner
    • Probate Administration
      • Probate is Complex – FAQ and Answers
      • Trust & Estate Litigation
  • About Us
    • Overview
    • Biographies
      • Heba K. Carter
      • Grace Clagett
      • Elizabeth Hart
      • David Kaye
      • Alexis Ruark
    • Our Founder
    • How We Help
  • Resources
    • Practical Counsel Blog
    • Bid Protest Weekly
    • VetWorking
    • Video Library
    • Webinars
    • Quotes in The News
    • GCPC First Generation Law Student Scholarship
  • Testimonials
  • Contact
  • Make Payments
703-556-0411

Ask General Counsel: Legal Considerations When Starting a Business

Thursday, 26 August 2021 / Published in Ask General Counsel, Business

Ask General Counsel: Legal Considerations When Starting a Business

Published by Ask General Counsel on InsideNova, 8/25/2021

Image from Inside Nova

There are many legal considerations when starting a business.  As attorneys, we are fortunate to help business owners start and operate businesses.  Unfortunately, we also see all the mistakes made by business owners.  Hopefully, the below outline provides guidance that can direct and protect business owners.

 

Determining the appropriate business entity – sole proprietor, LLC or corporation?

Every potential business owner should consider forming a business entity to limit his/her individual liability for the debts and other obligations of the business.  Without such a business entity, you are a sole proprietor or partnership and can be individually liable for business debts.

However, having a separate business organization, such as a corporation or limited liability company, may allow you to separate your personal assets from those of your business — and thus protect your personal assets from certain claims against your business.

Management and governance of entity

If you are going into business with one or more other people, it is essential that you determine the management of the entity through written documentation.  An LLC should have an operating agreement; a corporate should have a shareholders agreement, etc.

These documents outline the management and governance of the business entity.  They look forward to anticipating and, hopefully, avoiding disputes.  If you are in business with others, it is imperative to have strong governing documents.  If you don’t, you could experience disputes that could destroy the business.

Name and trademark rights

When you start a business, the name of your business can be important in attracting customers.  But thinking of a great name is only the first step.  The entity cannot have the same name as another business in the state in which it is organized.  If the business uses a trade name, that also much be registered.

Finally, registration of the business name or trade name does not provide federal trademark rights.  So, it is important to consider registering the name with the U.S. Patent and Trademark Office (www.uspto.gov).  For more information, read this article, What’s in a Business Name.

Registering where business is “doing business”

When you start a business, you must register your business in every state in which it “does business.”  If your business has employees in a state other than the state in which the business entity is organized — even if it’s an employee who frequently travels into the state on sales calls — or if your business does more than occasional business in another state, then the business entity may need to register as a “foreign entity” in that other state.

Choosing a registered agent

A business must appoint an official agent in every state in which it is registered and/or doing business.  In all states, when a business entity is sued, the legal papers for the lawsuit may be served on its registered agent.  Although business owners can serve as their registered agent, as discussed in this article, it is not recommended.

Employees, contracts, and other registrations

In addition to properly registering your business, the business has many other hurdles to consider.  It needs to register with the IRS and state taxation authorities.  Depending on the business, it may need to register with state professional regulators/licensing authority to conduct business.  If you plan on hiring employees, you need to determine whether salaried, hourly, and how to properly pay.  And, for almost any business, you need contracts that will protect your business.

Conclusion

Starting a business is exciting, but it is important to do it properly.  Since 2004, the attorneys of General Counsel, P.C. have helped thousands of business clients with all of these issues.  If you need assistance, contact us at info@gcpc.com or 703-556-0411.  Information on General Counsel, P.C. can be obtained at our website.

  • Tweet
Tagged under: business owners, Legal considerations, starting a business

TOP ARTICLE CATEGORIES

  • BUSINESS

  • LABOR & EMPLOYMENT

  • FAMILY LAW

  • GOVERNMENT CONTRACTS

  • LITIGATION

Subscribe to Blogs and Updates

Name
Areas of Interest:
The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Disclaimer | Privacy Policy

Consent(Required)

Address:

1320 Old Chain Bridge Road, #440
McLean, VA 22101

Hours of Operation:

Mon – Fri, 8AM – 5PM

Phone Number:

+1 703-556-0411


  • HOME
  • ABOUT US
  • PRIVACY POLICY
  • DISCLAIMER
  • SITEMAP
  • CONTACT US
  • MAKE A PAYMENT

General Counsel, P.C. BBB Business Review

© 2025 General Counsel, P.C. | Website Design & Development by High Level Thinkers

TOP