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title: What legal steps should I take before starting a business?
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 March 17, 2023

# What legal steps should I take before starting a business?

![Picture of Chris Battis](https://www.legalfaq.ai/hs-fs/hubfs/battis-mug.jpg?width=50&name=battis-mug.jpg) By  [Chris Battis](https://www.legalfaq.ai/faqs/author/chris-battis)  ·   1 minute read

## Legal Steps to Protect Your Business

Before starting a business, there are several legal steps individuals should take to protect themselves and their business. Here are some important legal steps you should take:

- **Choose a Business Entity:** The first step is to choose the right business entity for your business. The most common business entities are a sole proprietorship, partnership, limited liability company (LLC), and corporation. Each option has its own benefits, drawbacks, and legal requirements. To determine the best entity structure for your business, it is recommended that you seek legal advice from an attorney.
- **Register Your Business:** Once you have chosen your business entity, you will need to register your business with the relevant government agency. This will require obtaining necessary licenses, permits, and employer identification numbers. Depending on the type of business, you may also need to register for sales tax or other business-related taxes.
- **Protect Your Business Name:** To protect your business name and prevent others from using it, you should register it as a trademark. You can search the United States Patent and Trademark Office to ensure that your business name is not already in use.
- **Draft Contracts:** Before doing business with anyone, it is essential that you have a legally binding contract in place. You should consult with an attorney to draft contracts that will adequately protect your interests.
- **Protect Your Intellectual Property:** If your business has any intellectual property such as trademarks, patents, or copyrights, it is recommended that you seek legal counsel to ensure that they are adequately protected. This will help prevent competitors from infringing on your patents, copyrights, or trademarks.
- **Obtain Insurance:** As a business owner, it is important to protect yourself and your business from accidents or other unforeseen events. You should consider buying business insurance such as liability insurance, property insurance, or workers' compensation insurance.

Overall, understanding and complying with legal requirements is vital when starting a business. Therefore, seeking legal counsel is always advised to ensure that you are taking the necessary legal steps to protect your business.

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