Need an Attorney to help your Maryland or DC business? Contact Raymond McKenzie at 301-330-6790 or ray@mckenzie-legal.com

As the saying goes, “an ounce of prevention is worth a pound of cure.” With that in mind, here are five tips for every Maryland business owner.

1. Apply for federal trademark protection for your business trade name and logo. In its plainest terms, federal trademark registration protects your registered marks throughout the United States. With certain exceptions, no one may use your registered marks in any manner that confuses the public. Federal trademark registration is usually simple and inexpensive. The cost involved in registering your business name, logo, symbol or slogan is minimal compared with the benefits you receive.
2. Consider purchasing key person life insurance and/or disability insurance for your business’ owners and key personnel. These insurance policies can be vital in protecting your business when one of its partners, owners, members or key employees dies or becomes disabled. The proceeds of the policy can be used where necessary to purchase the owner’s ownership interest, as well as provide your business with necessary cash flow in the event of a loss of a key employee. All small business owners should investigate whether these policies are right for their business.
3. Keep the trade secrets of your business confidential. Employment and operating manuals, compensation plans, advertising strategies, financial statements, formulas, recipes, designs, and customer lists are all examples of trade secrets. Always: 1) mark such information as confidential; 2) keep the information away from the public domain; and, 3) have employees execute confidentiality and non-disclosure agreements, including a non-compete clause. Such agreements prove valuable when an employee threatens to utilize your confidential information.
4. Ensure that the agreements that govern your business’ structure are accurate. Review your business’ operating, shareholder, or partnership agreements to make sure they are accurate and current. The ownership structure of your business changes, as does your business’ expansion plans and growth. Ensure that all agreements governing your business are signed by every owner, and address subjects like an owner’s death, disability and retirement, as well as how ownership interests may be transferred. Ensure that the agreements accurately specify the powers held by each owner, as well as what acts require the unanimous consent of all of your business’ owners.
5. Make sure that your agreements protect you and your business sufficiently. Most owners pay attention primarily to the business terms of an agreement, ie. the length of the deal, the amount of product or service involved, and the compensation due. Just as important in any agreement are the acts that lead to default or termination of the agreement, as well as the renewal and termination provisions, dispute resolution procedures, and the recovery of attorneys fee if litigation arises. These are just some of the issues that you must address when entering into agreements with third parties.

Need an Attorney to help your Maryland or DC business? Contact Raymond McKenzie at 301-330-6790 or ray@mckenzie-legal.com