{"id":5453,"date":"2016-04-04T10:47:58","date_gmt":"2016-04-04T15:47:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/starting-a-business\/legal-limitations-to-consider-when-starting-a-business.html"},"modified":"2026-05-08T16:55:00","modified_gmt":"2026-05-08T21:55:00","slug":"legal-limitations-to-consider-when-starting-a-business","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/legal-limitations-to-consider-when-starting-a-business.html","title":{"rendered":"Legal Limitations to Consider When Starting a Business"},"content":{"rendered":"\n
\n

Legal Limitations to Consider When Starting a Business<\/h1>\n\n
\n
\n By Amber Sheppard, Esq.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
\n

Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
\n

This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
\n

The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

\n
\n
\n

Key Takeaways<\/h2>\n

Small business legal requirements are regulatory laws and obligations that entrepreneurs must follow to operate their companies legally and avoid liability. These laws range from intellectual property rights, to employment regulations, environmental standards, and obtaining necessary licenses or permits.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

Every business has certain legal restrictions and obligations. Entrepreneurs<\/span> should know the laws before starting a new business<\/span>. Even an innocent oversight by a small <\/span>business<\/span> owner<\/span> can result in serious legal trouble.<\/p>\n

This FindLaw article focuses on common legal restrictions when starting a small business<\/span>.<\/p>\n

Form your LLC with confidence.\u202fOur trusted partner LegalZoom has packages starting at $0 + filing fees.<\/a><\/i><\/b><\/p>\n

Intellectual Property<\/span><\/h2>\n

If you don\u2019t have a license to use someone else\u2019s photo, name, or song, do not use it in your business. You cannot use someone else\u2019s\u00a0trademark<\/a>,\u00a0copyright<\/a>, or\u00a0patent\u00a0<\/a>without permission. That is someone else\u2019s\u00a0intellectual property<\/span><\/a>.<\/p>\n

Limiting Professional Liability<\/h2>\n

Starting a new business<\/span> is risky. The business owner<\/span> can be personally responsible for the business\u2019s obligations. This is true for a\u00a0sole proprietorship<\/span><\/a>. A small <\/span>business<\/span> owner<\/span> may choose a business structure<\/span> limiting liability to address this risk. They can do this by forming a\u00a0corporation<\/a>, a\u00a0limited liability company<\/span><\/a>, or a limited liability\u00a0<\/span>partnership<\/span><\/a>.<\/p>\n

These professions have particular liability concerns:<\/p>\n