ABA Family Legal Guide

Forming and Operating a Small Business

So you've decided to take the plunge. No more wage slavery! You're starting your own business.

Of course, you want to get started on becoming the national standard in your industry immediately. But first, take some time to look at how the law will affect your business—a little planning now might save plenty of time, money, and heartache down the line. This chapter deals with the legal and other issues that have to be resolved when forming and operating a small business. Whether you're manufacturing lawn furniture, selling stuffed animals, or offering high-tech computer consulting, you'll have to face certain basic issues, all of which have legal dimensions. What will you call your business? Will you need permits or licenses? What form of business structure is most suitable for your business? This chapter also will answer some of the questions you might have if you're thinking of buying a franchise or an established business. The final section will consider some issues that may become important once your business is up and running, including some information on the last resort of the failing business, bankruptcy.

Some of the important legal issues affecting small businesses are covered in more detail in other chapters of this book. Chapter 12, "Law and the Workplace," gives you some information on your obligations to employees, and their rights; chapter 9, "Contracts and Consumer Law," provides you with information on two areas that are crucial to the small business owner; and more information on liability issues can be found in chapter 14, "Personal Injury."

1. Starting a Business
1. Financing a Business
2. Naming Your Business
3. Rules, Regulations, Licenses, and Permits
4. Commercial Leases
5. Working from Home
6. Insurance
7. Tax Requirements
2. Franchising and Buying a Business
1. Buying a Franchise
2. Buying a Business
3. Types of Business Organizations
1. Sole Proprietorships
2. Partnerships
3. Corporations
4. Limited Liability Companies
4. Intellectual Property
1. Trademarks
2. Patents
3. Copyright
5. Business Problems
1. Small Business Scams
2. Operational Problems
3. Bankruptcy