Wrong Business Organization

Some small business owners set up the wrong business type for their needs, and their business may fail or become entangled in legal battles.  The legal battles could lead to you having to file for bankruptcy or incurring personal liability. Without establishing the appropriate legal rights, you could lose everything. This is why it’s important to explore whether a corporation, limited liability company, sole proprietorship, or partnership is the right business organization type for you.

Intellectual Property

There are a number of different issues that can arise around intellectual property. It can start with infringing on someone else’s trademark, copyright, or patent. You could face litigation if you use someone else’s trademark which is not a great way to get your business off the ground. In addition, if you don’t take the proper steps to protect your own intellectual property, you run the risk of a bigger company taking your ideas and filing first.

There is something also called a “patent troll.” These are people who troll small businesses looking for the use of products that are from a patent. They file lawsuits for compensation knowing the business will likely settle and pay something rather than proceed with a costly lawsuit. Your attorney can quickly determine whether it is a simple issue or something that is worth defending in litigation.

Litigation Costs

Don’t assume that potential litigation in a small business is limited to business disputes with vendors or other businesses. You could have an employee who makes a claim, or a customer/client that files a lawsuit. If you can afford to have a lawyer on retainer, it will help keep your overall legal costs down, as a skilled business lawyer can help resolve business disputes early on rather than you trying to figure things out while racking up expenses.

Competition

Small business competition can be fierce. This is likely to occur in your local neighborhood. You may run into issues with a competing business who tries to make trouble for you or turn you in for potential violations of local city ordinances. Check zoning rules to make sure everything is proper and by the book, so you can minimize the potential for someone else trying to derail your startup. In addition, all your employee hires should be legal, i.e., not underage or ineligible to work in the US, so you don’t’ give the competition another avenue to try and shut down your business.

Inadequate Liability Coverage

Being underinsured can be an expensive mistake for small business owners. You should always look to purchase higher limits than the required minimums, as you could have a host of potential situations where you need a good liability policy. If your business sees clients or customers, you are also at risk for a premises liability claim.

Retaining a Washington DC Small Business Attorney

If you have a small business or are in the process of starting one, it’s the ideal time to speak with a skilled small business attorney. Contact the team at Tobin O’Connor Concino P.C. at 202-362-5900 to schedule an initial consultation.

What is a Trade Name?

Basically, a trade name is the formal name a company does business under.  You’ll hear it called a DBA (“Doing Business As”), a fictitious name, or an assumed name. This is achieved via a business filing. In Washington D.C., a trade name is filed with the Superintendent of Corporations of DCRA. A trade name can refer to a single word, a name, or any combination of a name or words that is used by a business owner to create a unique identity. It typically doesn’t include the real names of those running the business.

Trade names offer no type of brand protection nor do they grant you the right to unlimited use of your fictitious name.

You’ll need a trade name when you are doing business under any name other than your legal name. For example, Joe Smith sets up a new construction company and calls it Joe Smith Construction. He will need to complete the paperwork and register that as his fictitious business name. DBAs are used in some sole proprietorships and partnerships, as well as LLCs and corporations.

What is a Trademark?

A trademark offers protection for your brand name. It can also protect other things like symbols, slogans, and logos. A trademark can also be associated with your business’s trade name. Since your business name is likely one of your most valuable assets, it’s important to protect that by proceeding with a formal trademark application.

It’s important to distinguish between a trade name and a trademark. The United States Small Business Administration points out that if a business starts using its trade name to identify services and products, people may perceive that its name is acting as a functioning trademark. This is important as it has the potential to infringe on existing trademarks.

Trademarks can be registered on a federal level through the United States Patent and Trademark Office (USPTO). There is an option to file online using the Trademark Electronic Application System (TEAS), but you’ll need to do some research first. Start by identifying what is eligible for a trademark, and then you need to do an existing trademark search through the Trademark Electronic Search System (TESS).

To register a trademark on a state level, you’ll need to check the USPTO’s State Trademark Information page. This can direct you to the specific trademark office where you can do a search and verify the specific state rules.

Retaining a Washington DC Small Business Attorney

The USPTO has authority to issue penalties and fines for possible trademark infringement and clashes, which is why it’s very important to retain a good Washington DC small business lawyer when you’re setting up your business. The attorneys at Tobin O’Connor Concino P.C. are experienced with business startups of all sizes. We can prepare and draft all the necessary paperwork as well. Contact our office at 202-362-5900 today to schedule a consultation.

Resources:

dcra.dc.gov/page/trade-name-registration

uspto.gov/trademarks-getting-started/process-overview/state-trademark-information-links

sba.gov/blogs/difference-between-trade-name-and-trademark-and-why-you-cant-overlook-either