Legal Must-Dos for New Entrepreneurs
by Suzann Moskowitz
Special to Jstyle
When inspiration strikes—and a killer URL is up for grabs—it’s easy to rush into launching your business. But before you announce on Instagram or order that first batch of branded merch, there’s some unglamorous (yet crucial) groundwork to cover. Many founders learn the hard way that skipping key legal steps can lead to costly rebrands, ownership disputes, or even personal liability. Here’s what every entrepreneur should know before making their official debut.
1. Incorporating Isn’t Just Paperwork—It’s Your Safety Net
One of the smartest early moves you can make is creating a legal entity such as an LLC or corporation. This isn’t bureaucratic red tape—it’s a shield for your personal assets. Without it, your business debts or lawsuits could put your savings, car, or even your home at risk.
Forming an entity separates your business’s finances from your own, limits liability, and adds credibility with customers and investors. The right structure depends on your goals—and the cost of getting it wrong can be steep. A lawyer, accountant, and insurance agent can help you choose the right setup and assist with essentials like getting an EIN (Tax ID number) and the proper business licenses.
2. Your Business Name ≠ Your Brand Name
Let’s say you register your coffee roastery as “Sunrise Brews, LLC.” That business name might be approved by your state, but it doesn’t mean you own the brand. That’s where trademarks come in.
A trademark is legal protection for your brand’s identity—things like your business name, logo, or slogan. It prevents other businesses in the same space from using something confusingly similar.
For example, if you own the trademark for “Sunrise Brews” and another company called “Sunrise Teas” tries to enter a similar market, your trademark gives you the legal right to challenge them and potentially require them to change their name.
Before committing to a brand name:
• Run a trademark clearance search (start with USPTO.gov or consult a trademark attorney).
• Check for existing use in your industry (Google, social media, domain names, etc.).
If the search clears any material conflicts, consider applying for a federal trademark to help secure your brand rights and strengthen your ability to enforce them. Start by filing an application at uspto.gov. The USPTO examines the submission, may issue questions or refusals, and, if approved, publishes it for opposition. If no one objects, your business name (once in use) proceeds to registration. The process can be handled on your own, but many businesses find it helpful to work with an attorney to avoid missteps and improve the odds of success.
Each state also offers its own trademark registration system, which may be cheaper and faster—but protection is limited to that state. For any business reaching beyond state lines, federal registration offers much broader protection.
3. Ideas Aren’t Protected—Only Their Execution
Your business concept might be genius, but ideas alone (and even amazing recipes) aren’t generally protectable intellectual property. What is protectable? Your brands, slogans, product designs, inventions, and original content.
Without trademarks, copyrights, or patents, a competitor could legally replicate your work—and you’d have little recourse. Trademark your brand name and logo if exclusivity matters. Copyright your original content (like websites, photos, and packaging). Use NDAs when discussing sensitive, non-public information. And always seek advice from an attorney.
4. Contracts Are Critical—Especially with Creators
Hiring a designer to craft your logo? A developer to build your site? Without a written agreement, they own the work—not you. Independent contractors usually retain copyrights unless a contract assigns them to your business. Consulting with a lawyer before you hire someone to do that work will help you change that standard, clarify your ownership in writing, and avoid potential, costly disputes down the road.
5. Think Ahead: Employment & Operations
As you grow, employment laws kick in. Misclassifying employees as contractors, skipping workers’ comp and unemployment insurance, or neglecting equity agreements can spark fines, or worse, lawsuits. Invest in foundational legal advice and documentation early—it’s far cheaper than fixing mistakes later.
The Bottom Line
Building a business is thrilling—but protecting it takes foresight. The steps outlined here are just a starting point; many more considerations can impact your long-term success. Taking action early can help you avoid costly legal battles, rebrands, and ownership disputes. And while moving quickly has its appeal, having trusted counsel is essential. Launch fast if you must—but launch smart.
Suzann Moskowitz is the founder of The Moskowitz Firm, a boutique practice focused on trademarks, copyrights, and related licensing matters. She works closely with creative entrepreneurs, startups, and established businesses to protect and strengthen their intellectual property. The Moskowitz Firm is proud to celebrate its 15th anniversary this summer.
Publisher’s Note: This article is for informational purposes and is not intended as legal advice or as a substitute for the advice of an attorney. People seeking specific legal advice or assistance should contact an attorney.