Starting a business within a few weeks

I am starting a business within a few weeks. It will be under my name only. It's a sole proprietorship.

My wife will work for me as an account executive as I can see her potential in sales.

However, the nature of my business is the same line as her current employer.

I understand that it is illegal for any employee to start a business in the same line as their employer because according to law, 2 years must elapse in order for the employee to start the same line.

But, since I am the sole owner not my wife and she will be just a regular employee, my question is, would there be any legal hassle to this?

Thanks in advance!

When you mentioned the two year interim period, are you referring to the employment contract of your wife?

There is no law requiring a two year interim period to start a business similar to one's employer.

lawddesign wrote:When you mentioned the two year interim period, are you referring to the employment contract of your wife?

There is no law requiring a two year interim period to start a business similar to one's employer.

Thanks for replying.

It's not the employment contract. She will resign to join my company. I'm just worried that her former employer will go after her legally because I think you need 2 years before you can engage in the same line of business due to some trade secret protection, etc.

Since she is my wife, I'm not sure whether she's also automatically an owner even though the company is under my name. If that is automatic due to conjugal property, then she is as good as an owner as well.

The sole proprietorship by its very title means that the business is owned by an individual.For the purpose of commercial transaction, it only pertains to you.

The issue on conjugal ownership with your wife arises only in case of liquidation of the conjugal assets which happens only in case of disposition of assets of either spouse, death of either spouse, annulment of marriage.

you are referring to a non-compete clause. there is no obligation unless it's included in the employment contract.

Thank you so much for your advices - lawdesign and attyLLL.