A startup from Sweden is planning to launch a completely new business startup, the Pogo Stick. Cangorro plans to launch this app-based service which is a pogo stick sharing system. The plan is to involve several cities such as Stockholm in Sweden, and San Francisco, California.
The business concept can be said as an idea to reduce the number of cars running on the streets and reducing the overall pollution for the economy. People who rent this pogo stick can literally hop their way to and from their work. The aim is to make it possible for as many as 10 000 jumps to become the steps of the daily exercise.
The idea is to know and be innovative. At the same time, the business concept is highly risky. And if your business revolves around a pogo stick, you need to take extra precautions to protect it. Here are some of the ways that can help you keep your business safe.
Form an LLC
If your business is similar to the Pogo Stick services, it is recommended that the entity that should be selected should be a Limited Liability Company (LLC) or a corporate structure. These are not the only two legal entities available to the startups. You can also start the company as a Sole Proprietor, which makes you the ultimate boss of the business.
But, incorporating as an LLC or a corporation gives the entrepreneurs’ liability protection. Such a business type ensures all the personal assets that you have and keeps them separate from the business. Also, if you face a lawsuit, such a business structure will not let you lose your personal assets such as a house or car.
Trademark Protection Filing
Most of the startups have a unique phrase, logo, design, logo, or a symbol associated with the company and which marks it unique from the rest. This is known as the trademark of the business. This differentiates the startup from the rest of the businesses marking its unique presence in the market.
When a small business does not register its trademark, they face the risk of being plagiarized by outside sources. This makes it very important for entrepreneurs to claim their mark as soon as possible by filing a trademark application.
Get the Necessary Businesses Licenses
Three factors determine the type of business license needed by any startup. These include location, entity type, and industry. There is a set of documentation that you need to complete before you start working as a fully functional entity type. The first one is the business license which enables the government to identify and track all your tax purposes and allows you to operate within the city, country, or state.
Apart from this, the businesses must also apply for the Employer Identification Number (EIN), which is associated with the hiring of employees. The EIN number also helps a small business to open a business bank account and develop a credit profile.
High-risk startups might be different and might need to develop several or different documents as per the business type and structure. However, careful planning will help even the risky business to sustain itself in the market.
Source – Allbusiness