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Before you start a new business, it really is worth understanding some of the legal issues at stake. Most of them are pretty straightforward and there to protect you – so take the plunge and check them out.

So you’ve researched your business idea and you’re keen to get it off the ground. Congratulations! To ensure your new business has the best start in life, there are some basic legal points to consider. But don’t worry, there are plenty of organisations and sources of advice out there to help you. This overview will point you in the right direction.

There are three main types of business: limited company, partnership or sole trader. Many people start as sole traders, but you could go into a partnership or even a limited company straight away. Find out more in the article what kind of company is right for you?

Solicitors are expensive. Whether you need one or not depends on the type of business you have. You may need a solicitor if you are starting a limited company, otherwise your accountant should be able to help. The Law Society’s ‘Lawyers For Your Business’ scheme can help; call 020 7405 9075, or visit www.lfyb.lawsociety.org.uk

Another useful source of legal and business advice is professional bodies and associations. In return for your membership fee, which can vary, you may well get helplines and general advice in your industry. It’s worth checking these associations out as they will help to keep you up to date with developments in your sector, as well as offering good networking opportunities.

Don't know your trade association? The businesslink website has a useful section of contacts and regulations called 'Your type of business'.

When choosing your business name, a key issue is to avoid ‘passing off’ as a well known company. In other words, don’t call yourself McDonald’s if you’re opening up a burger bar! When coming up with a name, you could ‘Google’ it to see whether anyone else is using it. If it’s available, try to register it as a website address through a name registration company.

If you trade under a made-up name such as ‘Serendipity’, you must ensure that your real name and address is included on your stationery. If you have a limited company, you must put your registration number, VAT number (if you are registered) and the address of your registered offices on your stationery.

Check out the regulations concerning business names and registration at Companies House.

If you create something – such as a design, a photograph or a piece of writing – the copyright belongs to you. The buyer can’t use the product or service until they have paid the agreed amount for the agreed usage.

If someone does use your work without permission, you can take them to court. But it can be difficult and expensive to prove. The best thing is to make everything clear from the start.

Any good business records information about its customers. However, you do have legal responsibilities concerning the way you collect and use this data, particularly if you have an online business. You cannot pass on information about your customers without their permission.

There’s full guidance on data protection regulation on the government’s information commissioner website  and advice on business link.

1. Get everything in writing
2. Work out a pricing structure for your goods or service; be clear about what is and isn’t included
3. Have a contingency plan for when things go wrong – such as breakages, late delivery and unwanted goods.