At their core, most entrepreneurs are dreamers. They dream of starting a business that will provide not only financial security but also personal fulfillment. Starting your own company and expanding it into a thriving business is a feat that few achieve. Many businesses fail within a few years. However, some entrepreneurs rise above the fray and achieve their business dreams. If you are thinking about developing a startup, it is important to explore your options carefully.

Will This Business Be Profitable?

Starting your own company is about much more than making money. A startup allows an entrepreneur to create something of great personal value. However, The bottom line of any business is profitability. You must ensure that your business will be lucrative. It is not enough to have an innovative idea or original product, you must also ensure that you will be able to sell your products and services to customers.

What is My Competition Like?

Over 4 million companies were founded in the year 2020 alone. Evaluating your business’s potential competition is an essential part of developing a successful business. Research businesses that are similar to your startup idea. What will your business offer that other businesses do not? How will your business stand out from the competition?

Non-disclosure agreements (NDAs) are employment contracts between employer and employee that serve as a necessary safeguard to protect business trade secrets. Such trade secrets include proprietary information of the disclosing party and any research or knowledge that is not yet patented or copyrighted. There are two types of non-disclosure agreements: unilateral and mutual. The one-party unilateral NDA is the most common. Unilateral NDAs specify employee confidentiality during and after employment and usually includes an expiration date.

Every NDA is distinctive to the business’ needs. Astutely drafted NDAs are more likely to be upheld by the courts. NDAs with overreaching provisions may be ineffective and subject to litigation. So, it is essential that an NDA is precisely customized to the employer’s needs.

NDAs Help Businesses Thrive and Stay Out of Jeopardy

The benefits of an NDA diminish the real risk of business ruin. Succinct NDAs stipulate what is confidential. NDAs can encompass a myriad of complex agreements and clauses, but the standard unilateral NDA incorporates:

Business owners will need to address a variety of legal issues when establishing and operating a business. One of the most important decisions that will need to be made involves how a business will be structured. During the business formation process, owners or partners will need to select the correct type of business entity, meet all legal requirements for registering the business, and ensure that the proper organizational structure, management practices, and reporting procedures are in place. In many cases, structuring a business as a limited liability company (LLC) can provide a number of benefits. By working with a business law attorney, owners and partners can make sure they follow the correct procedures to create and operate an LLC.

Reasons to Choose an LLC Business Structure

LLCs provide many of the benefits of corporations while providing owners with the ability to maintain control over business operations and make changes as needed. An LLC may have a single owner, or multiple partners (known as members) may share ownership. If necessary, new members can be added when a partner purchases an ownership share of the company or steps into a leadership role. Advantages of an LLC include:

• Protection from liability - In most cases, members of an LLC will not be held personally liable for the business’s debts and financial obligations. This ensures that the personal assets owned by a member will not be at risk if the business experiences financial setbacks or is unable to pay its debts.

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Businesses often rely on contracts to protect their rights and interests, and these legal agreements can protect them from financial losses if they meet all of their contractual obligations. However, there are many cases where a business may be placed in a difficult position because another party failed to fulfill a contract’s terms. In these cases, a business may pursue a breach of contract lawsuit, and it may seek to recover damages from the other party to address the losses that it experienced because of the breach.

Types of Breach of Contract Damages

When pursuing civil litigation to address a breach of contract, a plaintiff will not only need to show that the defendant failed to meet their obligations under the contract, but they will also need to demonstrate that they suffered harm because of the breach. If a plaintiff proves that the defendant’s actions caused financial losses or other forms of harm, a court may award damages to the plaintiff. These damages may include:

• Compensatory damages - The defendant may be required to repay the plaintiff for the losses that occurred because of the breach of contract. These may include consequential damages that occurred as a direct result of the breach. For example, if the defendant failed to deliver equipment that the plaintiff had ordered, the defendant may be required to refund any payments made by the plaintiff, and they may also be required to pay for any additional expenses incurred as a result of ordering replacement equipment. A defendant may also be required to pay expectation damages for additional losses that arose because of the breach of contract. For example, the failure to provide equipment may have affected the plaintiff’s ability to perform certain types of work, causing them to lose business from a customer, and the defendant may be required to compensate the plaintiff for these losses.

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There are multiple types of business contracts that can provide a business and its owners with legal protections and ensure that a company will be able to operate successfully. A well-drafted partnership agreement is one of the most crucial types of contracts for a business since it will define the relationship between business partners and ensure that they fully understand their rights and responsibilities. When creating a partnership agreement, an attorney with experience in business law and contractual issues can make sure the terms of this contract will protect the partners’ rights and meet their ongoing needs.

Terms of a Partnership Agreement

A partnership agreement should address:

• Percentage of ownership - An agreement should fully detail each partner’s stake in the company based on the money or assets they have invested. An agreement should also describe how profits and losses will be allocated between the partners, and these allocations will usually be based on each partner’s ownership percentage. 

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