Articles Tagged with Startups

AdobeStock_152432443-300x200Human resources is a growing industry primarily because of the complicated federal, state, and local employment laws applicable to all businesses. From tax withholding and worker’s compensation insurance to non-discriminant hiring practices and immigration considerations, the hiring process can quickly overwhelm a business. The following specifications highlight the primary employment law considerations applicable to any growing companies. Although this list will be helpful, you should contact a qualified employment law attorney in your local jurisdiction as soon as you identify the need to hire employees, as there are even laws that apply to the advertising process.

Insurance Requirements

Companies consisting only of contractors and non-employee owners are not subject to the same health, disability, unemployment, liability, and worker’s compensation insurance requirements applicable to “employers.” While carrying liability insurance, such as renters or property insurance, is always a best practice and may be required by local law, federal and state law requires employers to carry the following insurance:

Often, selection and formation of a startup can be stressful and confusing.  But it is not the end of the process.  In order to protect your startup and its status, many steps must be followed to continue to ensure the startup remains in good standing with local and state laws.  The experienced California corporate lawyers at Structure Law Group, LLP can help entrepreneurs and businesses, at any stage of the process, protect and maintain their corporate form.

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Why It Matters

Formation of a limited liability company (LLC) or incorporation of a startup takes time and money to gain the protections offered by the corporate form.  If a business owner fails to maintain the ongoing requirements, the startup’s status may be put in jeopardy, and as a result, can lose the protection offered by the corporate form.  Maintenance of a corporation or an LLC is a continual process, requiring completion of steps to be in compliance with all applicable California state and local laws.

Businesses Should Elect to Incorporate in a State with Favorable Business Laws

When starting a business, owner(s) should always be focused on incorporation. Incorporation is important because it provides owners and investors business law protections that would not otherwise extend to individuals. Not only should a startup concern itself with selecting a business entity which works best for its needs and long-term goals, but it should always be concerned with incorporating in a state whose business laws best protect the business’s needs.

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Startups most often incorporate in the same state in which its owners live and do business. This choice is easiest and makes sense. However, while incorporating in the state of the startup’s principal place of business is just fine, owners may wish to incorporate elsewhere for purposes of jurisdiction, tax liabilities, protections under the law, and other considerations. 

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