Starting a business is exciting—but skipping the legal stuff can cause serious trouble down the road. While you don’t need a law degree to launch, there are a few legal basics every entrepreneur should understand to protect themselves and their company from day one.

1. Choose the Right Business Structure

The structure you choose affects taxes, liability, and how you raise money. The most common options are:

• Sole Proprietorship – Easy to set up, but you’re personally liable for business debts.
• LLC (Limited Liability Company) – Protects your personal assets while offering flexibility.
• Corporation (C-Corp or S-Corp) – Better for raising capital but more complex.

Most small businesses start as LLCs because of their simplicity and protection.

2. Register Your Business Name

Check if your business name is available and register it with your local government. You may also need a “Doing Business As” (DBA) if you’re using a name different from your own or your LLC’s name.

3. Get the Right Licenses and Permits

Depending on your industry and location, you may need local, state, or federal licenses. For example, food businesses, consultants, and e-commerce stores all have different requirements.

4. Protect Your Intellectual Property (IP)

If you have a unique brand name, logo, or product design, consider trademarking it. If you’ve created original content, inventions, or technology, explore copyrights or patents.

5. Use Contracts—Always

Even if you’re working with friends, always put agreements in writing. Use contracts for clients, contractors, vendors, and partners. This reduces misunderstandings and protects your interests.

6. Understand Taxes and Finances

Open a separate business bank account. Track all income and expenses. Know your tax obligations—sales tax, self-employment tax, and quarterly filings may apply. Hiring an accountant early on can save you stress and money.

Legal tasks might feel intimidating, but taking care of them upfront gives you confidence and peace of mind. It’s not just about avoiding risk—it’s about building a real, professional business from day one.