Entrepreneurs considering business incorporation in New York State can minimize the chances for mishap by choosing the right corporate entity, addressing trademark issues and avoiding any mixing of business and personal capital.
Writing at VentureBeat, Attorney Curtis Smolar lists a few of the key areas to keep in mind during business formation to avoid common problems.
"As you focus on the big picture, it''s easy to ignore the minutiae of organizing your company," he says. "But those details matter - and ignoring them can be hazardous to your company''s health."
Deciding on the right kind of business entity is critical. Sole proprietorships and partnerships do not provide any liability protection. An S corporation or C corporation will protect the financial assets of the owners, as will an LLC.
However, mixing business and personal finances can open up an owner to legal liability - even in corporations or LLCs.
Protecting intellectual property with trademarks or copyrights will guarantee a business retains its advantage. Smolar says using contract language that refers to "work for hire" assures that the company will own any finished product.
Trademarks are sometimes used before official registration by simply using the "TM" symbol, and copyrights can be unofficially protected by keeping a dated copy of material.
Tags : az, c corp, ca, formation, incorporation news, llc, lp, ny, s corp, tx
Posted: Sep 14th, 2010