This chapter will give an overview on how to create a strong ethical culture in an entrepreneurial venture. Besides, explain about the importance of establishing a strong ethical culture in a firm such as the importance of having a code of conduct and an ethics training program. The criteria important to selecting an attorney for a new firm and the importance of a founder’s agreement also been discussed in this topic. Several suggestions for how entrepreneurial firms can avoid litigation, an overview of the business licenses and business permits that a start-up must obtain before it starts conducting business will provide in this topic. In addition, the importance of nondisclosure and non-compete agreements and the differences among sole proprietorships, partnerships, corporations, and limited liability companies also will be discuss in this topic. Lastly, this topic will give an explanation on why most fast-growth entrepreneurial ventures organize as corporations or limited liability companies rather than sole proprietorships or partnerships.
