Running Head: BUSINESS LEGAL ISSUES 1

Legal issues related to the implementation of a new business

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Introduction

At some point, any business, whether small or big, has to face some legal issues. This

paper seeks to identify and discuss some of the leading legal matters that are related to the

implementation of a new Fintech business.

Choosing the kind of company/business structure is one of the leading legal issues that

fintech business will face. When starting the business, the Fintech organization will have to

decide the kind of company or structure of its business(Divanbeigi & Ramalho, 2015). The

Finetech business organization can choose to register as a sole-proprietorship, partnership,

corporation, or even limited liability company. The choice of company type will depend on

liability consideration and tax laws. The tax rate system of a country often results in various

macroeconomic consequences. Important to mention, the significant increase or decrease in the

amount of tax charged to business organizations often retroacts with numerous consequences,

both positive and adverse.

The method of governance is another common legal issue that is faced by new

businesses. It is, therefore, imperative to define and regulate relationships with the business

organization by clearly setting and appropriately distributing liabilities and responsibilities

within the company (Mazzarol, & Reboud, 2020). In this case, everything should be put in

writing, such as defining ownership, governance, employment, and even partnership. Various

companies are looking for ways through which they will become able to place themselves in the

business platform successfully. The involvement of business strategies has become the only way

that these companies can use to foresee their success.

Also, defining intellectual property is another legal issue new business organizations such

as Finetech should consider. Determining the kind IPs is essential in protecting the development
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of key business factors(Mazzarol, & Reboud, 2020). If a business creates new content or

develops new products and services, it is likely to face IP issues. It is estimated that almost 5% of

all business organizations suffer IP legal issues. Therefore the business needs to protect its ideas

and identity either by establishing patent laws or copyright laws. The business identity can be

protected by creating trademark laws such as names, logos, and designs.

Financial investor's involvement is another important legal issue that should be

considered when establishing a new business. It is essential to find financial investor

involvement because it helps in securing significant investment that is essential in fostering the

development and survival of the industry (Divanbeigi & Ramalho, 2015). The business should,

therefore, establish appropriate legal transactions in all their transactions to avoid the creation of

long-term problems.

Legal issues could be problematic when establishing business because they require a new

company to put more effort, time, and resources to implement (Divanbeigi & Ramalho,

2015). Legal issues could also kill new businesses since some are difficult to implement, thus

affecting business owners and their capacities.

In conclusion, legal issues play an essential role in establishing and developing a

successful business. It is, therefore, important for new businesses to antedate and tackle some of

the common legal related issues in an appropriate and timely manner.

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References

Mazzarol, T., & Reboud, S. (2020). Work Book: Franchising and Legal Issues for Small Firms.

In Workbook for Small Business Management (pp. 127-133). Springer, Singapore.

Divanbeigi, R., & Ramalho, R. (2015). Business regulations and growth. The World Bank.