5 Things to Know Before Starting A Business While in College

Entrepreneurship does not begin when individuals reach their 30’s. Nowadays, more people are starting businesses while still pursuing a college degree.  For example, Facebook, Snapchat, and other tech companies were all started by college students. But, one thing that most students forget about are the operational and legal responsibilities that involve owning a business.

If you are a college student and are thinking of starting a business, here are five things you should do according to FindLaw.com:

1. Form your business properly. If you’re considering turning your genius idea into an actual business, you’re going to need to choose a legal structure for that business. This can be anything from a partnership to a corporation to a non-profit or even a public benefit corporation, depending on what you’re doing and how you’re doing it.
2. Get everything in writing. Although oral agreements can sometime be enforced, it’s always best to memorialize any sort of agreement regarding your business in written contract form. This includes founder agreements, employment contracts, and the terms of any investment in your business. If the other side fails to live up to their side of the bargain, having a signed contract may be the best way to enforce your rights in court.
3. Consider using non-disclosure agreements. The sensitive nature of start-up intellectual property may require that your contracts with employees, co-founders, or investors include non-disclosure agreements, which protect the confidentiality of your businesses trade secrets.
4. Also consider adding non-competition agreements. You may also want to require your employees to sign non-competition agreements, which may limit their ability to work for a competitor or start their own competing business.
5. Have a lawyer review everything. Having a business lawyer draft or at least review all of your legal documents can ensure they are valid and binding. A business lawyer can also help you stay ahead of potential legal issues and handle any that may unexpectedly arise.

To find a reputable lawyer, you can check your local Bar association or research directories online.