designs, some aspects of your design (such as a unique belt buckle or unusual and ornamental pocket design, for example) may be entitled to protection.

Certain aspects of your business can be protected through a reasonably inexpensive and perhaps less formal means known as trade secret law.  Trade secrets can include, among other types of information, customer lists, manufacturer contacts, pricing models, and marketing plans.  In order to protect a trade secret, you must take sufficient measures to actually keep it secret.  There are many low cost ways of doing this including: restricting access to information on a “need to know” basis and possibly using passwords on company computers for certain documents, identifying documents as confidential, limiting conversations involving trade secrets in public places and reminding employees and independent contractors to do the same, and using confidentiality and non disclosure agreements when it is necessary to share trade secrets.

Other methods of protecting your intellectual property, such as obtaining a patent on a new technology, may also be helpful to your business.  All of these should be discussed with a lawyer to see which are best (and most affordable) for your new venture.

As you prepare to begin your new business, it is also necessary to determine the type of entity you will use.  Choosing the appropriate business form can minimize liability, reduce taxes, and make it easier for you to secure outside investment.  New businesses generally choose among a sole proprietorship (if there is only one owner), a partnership (either general or limited), a corporation (either C or S) or a limited liability company.  Operating as a sole proprietorship or general partnership may be the easiest as these business forms have low or no formation costs.  However, they do not offer their owners limited liability, which means if the business is sued, the owners’ personal assets may be at risk.  Corporations and LLCs, on the other hand, both offer limited liability.   There are many other factors to consider and it is important to carefully analyze the options with an attorney and an accountant to be sure you select the business form that best meets your needs. 

This article only touches upon some legal issues that arise when starting a new business, and is not intended to be a comprehensive checklist. However, we hope it sparks thoughtful consideration of the legal aspects of building a new business, and helps you start identifying issues you will face as you embark on this exciting journey.