Starting a new business is a brave step. Becoming an entrepreneur is very exciting but, at the same time, it is an uphill task that requires many cautious steps. You must not forget to look into the legal requirements of your business because failure to do so could get you into hot water later on. Today, I am going to share the top 5 legal mistakes that every entrepreneur must avoid to become successful. One of the first ones before we get into the list is not getting the right lawyer. Some of your local car wreck lawyers may not be the best bet for your business endeavours, so find a lawyer in the niche you are needing them for to begin with. Choosing the Wrong Entity Any entrepreneur should choose the entity he should use for his business. If you are aiming to start a business, you can go for the sole proprietorship, partnership, or a corporate. You must choose the entity according to your ability and capital. For example, if you have a low capital, then sole proprietorship can be the best option to start the business. Sole proprietorship requires minimal documents and it will protect you from losing your personal assets in case your business venture becomes unsuccessful. On the other hand, your risk might be higher if you go for partnership or corporation. Hence, choosing the right entity has a great importance by law. Incorporating Late If you are just transforming your business ideas into reality and you are spending a lot of time and money for the business, then you must incorporate your business early on. There are several benefits of incorporating your business early. Registering your business as a corporation or limited company can protect your personal liabilities. Incorporating your business safeguards the interests of several stakeholders, such as owners, partners, founders, and investors. Registering your business protects your property and copyrights as well. If you do not register your business, then another person might use it for their own purposes. Delaying Agreements of Ownership and Operations If you are not the sole owner and you have multiple investors or partners, then you must setup you agreements earlier on. You must decide duties, responsibilities, rights, investment, profit shares, asset contributions, and removal process with all the partners in writing. You must write all the terms and conditions of the agreements in black and white. Your agreement must be validated by the legal authority. You must avoid keeping the written agreement without validation of the legal authorities. You must maintain the proper documentation and also update the agreements if any of the investor or partner changes. Not Getting a Business License Many businesses and services require getting a business license before starting.A lot of entrepreneurs do not pay attention to get a business license earlier on and this negligence incurs severe penalties. Even, if you are running a home-based business, check with your attorney because you may still need a license.
The United States has no intention of negotiating with Hungary about its new higher education law, which could force a top university founded by U.S. financier George Soros out of the country, the U.S. State Department said on Tuesday. The Central European University (CEU) found itself in the eye of a political storm after Hungary’s parliament passed a law last month setting tougher conditions for the awarding of licenses to foreign-based universities. The law has triggered a series of street protests – the most recent on Sunday – against Prime Minister Viktor Orban’s right-wing government less than a year before a parliamentary election. Orban had proposed talks with the U.S. about the law, saying the reforms were meant to level the playing field for all universities in Hungary. But Tuesday’s response dashed any prospect of a compromise through talks with Washington. “The Government of Hungary should engage directly with affected institutions to find a resolution that allows them to continue to function freely and provide greater educational opportunity for the citizens of Hungary and the region,” the State Department said in a statement. “The U.S. Government has no authority or intention to enter into negotiations on the operation of Central European University or other universities in Hungary,” it said. Orban’s government said it had a clear interest in reaching an agreement “but unfortunately no support for this process has been forthcoming from the U.S. federal government.” Washington again urged Hungary to suspend implementation of the law, but Budapest rejected accusations the reforms were discriminatory or that they threatened academic freedom.
WASHINGTON – The Trump administration will require cities and other local jurisdictions to prove that they are complying with federal law mandating that they share information with federal immigration authorities – or risk losing millions in grant funds. The directive issued Monday by Attorney General Jeff Sessions appears to redefine terms of President Trump’s controversial executive order that would punish so-called “sanctuary cities” that do not fully comply with federal immigration enforcement efforts. The general term describes more than 300 local government that have limited their cooperation with immigration officials. Sessions also said that the order would not put at risk all federal grant money, but would apply only to those funds administered by the Justice Department and the Department of Homeland Security.