legal

In this session you will learn about building your team, working with outside advisors, and how to hire employees.

OVERVIEW

Even if you have no employees, you are likely to need bookkeeping, accounting and legal advice. These advisors should be considered part of your team.  You don’t have to know, be and do it all to have your own business. You do have to gather a team who can cover the areas you don’t know.

DEFINITIONS

Burden Rate: (also called Payroll Burden or Payroll Taxes) Besides wages and salary amounts, there are other employee-related costs, depending on their part-time or full-time status. These can include employer taxes, insurance benefits, etc.

COBRA (Consolidated Omnibus Reconciliation Act): A federal law that extends health insurance to employees and their dependents beyond the point when they would normally lose coverage, such as after quitting, being fired, or changing personal status (employee divorcing a spouse, children reaching majority). Companies do not have to pay for this coverage.

Equal Opportunity: The Equal Employment Opportunity Commission guidelines, and related state and federal laws, which stop employers from asking potential hires personal questions not related to the job. This includes questions about age, sex, race, creed, religion, country of birth, disabilities, military discharge, whether they are married, have children, have health or mental health problems, and citizenship (although you can ask whether they have the right to work legally in the country, and you will be required to obtain proof of this at hiring).

Outsourcing: Sending certain job functions to an outside company, instead of handling them in-house.

Sweat Equity: The time and knowledge that a person or a group puts into a business to make a result, without pay.

In this session you will learn:

  • There are many types of startups, from the simple one-person business to a complex technology startup, with a lot in between.
  • How to choose a business name, and how to own the name.
  • Basic legal business types: corporations, limited liability corporation, sole proprietorship, fictitious business name and “doing business as” (DBA).
  • Business locations: home office, retail store, business offices, and so on.
  • What is a business plan, and why is it useful?

OVERVIEW

Now that you have decided on the business concept, how do you want to set up your business? Making these decisions now will help you build your business foundation:

  • What is the best legal setup for your business? What are the costs?
  • Will you have a partner? If so, what will the taxes be for each of you?
  • Is your business name already used by someone else? How can you find out?
  • Do you need a storefront location to reach your customers?

DEFINITION

Intellectual Property: Common types include copyrights, trademarks, patents, industrial design rights and trade secrets.