It is a part of business that is ultra-important, but it many cases, legal issues and possibilities are often not discussed. Many entrepreneurs just hire an attorney (hopefully, at least) and throw the business legal responsibilities to them.
And do they know for sure that attorney can cover all the legal needs required in the business?
Did the entrepreneur ask the questions to ensure this attorney is knowledgeable in the legalities his/her particular business will require?
Many attorneys specialize in certain areas and a patent attorney may not understand labor laws.
Of all the legal tips I am going to give you today, make sure that this one is at the top of the list…
Disclaimer: I am not an attorney, so all the tips I am giving should be double checked by your attorney.
Legal Tips #1 – Question and make sure the attorney you contract can cover all your business needs or at least has a network of other attorneys versed in those areas.
I am going to give you 7 more legal tips you need to know as an entrepreneur. I suggest you print these or write them down.
You don’t want any small or large legalities becoming a roadblock to your entrepreneur dreams.
Legal Tips #2 – Your Business Structure
You may be better off setting your business structure up as a Limited Liability Company or a Corporation.
By doing so, you will protect your personal assets and it can also give you some good tax advantages.
Legal Tips #3 – Budget Enough
Legal costs can get somewhat high. I would say that if you have a legal budget in mind, add another 20% to it.
You never want to “low ball” your legal budget.
Legal Tips #4 – Get It In Writing
While an oral contract is binding, you still have to be able to prove it was said.
Why go through that stress?
Make sure everything is in writing. Even if it is just an email between the 2 parties, that is much better than a he/she said scenario.
Legal Tips #5 – Advice Could Haunt You If Not Protected
While it is not something that happens often, it does.
As entrepreneurs, we tend to share tips and advice. And if an individual follows your advice but something goes drastically wrong, they could possibly attempt to blame your advice.
The best protection against this is simple liability insurance. I suggest you speak with your business insurance agent about this.
And make sure you have all the other business insurance you need in the process.
Legal Tips #6 – Have A Clear Understanding Of Employment Legalities
While many small businesses are relying on independent contractors, freelancers, you need to be completely aware of all the legal definitions are between independent contractors and employees.
By understanding these legalities, you will keep your business on the good side of the Internal Revenue Service.
Legal Tips #7 – Make Sure Your Business Website Is Compliant
This is an area where many young entrepreneurs have made serious mistakes.
Your business website must have a privacy policy that covers how you use personal information from website visitors. You should have an attorney study that privacy policy to make sure you are compliant.
This also goes for a terms and conditions page. Keep in mind that you need to tell website visitors if you are promoting affiliate links.
Legal Tips #8 – If There Are Co-Founders, Have A Buy/Sell Agreement
It isn’t necessarily an exciting subject but when you have partners, you have to ensure there is a plan in place if 1 wants out or dies suddenly.
This is an area where having an attorney present is the wisest way.
Conclusion
To be quite honest, I am just slightly “touching” on the many legalities that entrepreneurs can have. There are many others such as:
- Licenses
- Leases
- Trademarks and/or patents
- Etc…
I highly recommend that you study all your legal subjects and consult with an attorney before you follow through with starting your new business.
This post is not written to frighten you, just open your eyes to the various things that must be done.
Again, I am not an attorney, so be sure and seek out a professional’s advice.
If you have any questions I have no problem with trying to give an answer or guiding you to a person who can answer it. Just post it below.
On the lighter side, I can help you with your home business. You will surely find the 3 in 1 tools in the Home Business Success Kit a great help. Just click here and learn more.
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