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Understand What You Sign: All to often people sign documents without truly digesting their meaning. By way of example, it is beneficial for an employer to have their new employee sign a mandatory arbitration provision when they start work.
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Form a Separate Entity: Determine the proper entity structure for your business. Your choice of entity influences how you borrow money, how you will be taxed and how you structure the sale of your business. Set up your business from the start in a separate entity.
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Prepare for a Bad Day:
Similar to having everything in writing, it’s important that you set up non-compete clauses and other protective documentation in order to protect your business and assets.
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Seek Legal Guidance For Loans & Mortgages: Obtaining a credit line for your business through loan acquisition or creation of mortgage may be an effective tool for growth and expansion.
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Finding the right co-founders for your business can be likened to finding a single needle in a stack of needles. Difficult right? You have to worry about similar work ethic, investment timeline and believe it or not.
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Always Keep Personal Funds & Business Funds Separate: Your business funds & your personal funds should always be kept clearly distinct & separate to avoid the appearance of commingling. Any commingling can open you up to legal issues.
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A Founders' Agreement is a contract that a company's founders enter into that governs their business relationships. The Agreement lays out the rights, responsibilities, liabilities, and obligations of each founder.
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Listen to Your Legal Advisers: It's also important to remember that your attorney understands the litigation process in a way that you don't. While you're a foreigner in the legal realm, your lawyer lives there.
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Lawyers don't just sue. In fact, suing can be one of the more expensive & time-consuming ways for you to get compensated. Make sure your lawyer has an open mind about alternative means to resolve your problem, such as mediation or arbitration.
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#EquityArrangement: When things go south, and they always do, the people you started out with might be tempted to jump ship. When that happens, how much of the company will they walk away with? This is why it's important to formalize equity arrangements early on.
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Make sure you are covered and not breaking the law. The consequences for not having your legal house in order can be expensive.
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Don’t Let Legal Requirements Scare you Away from Entrepreneurship: Unfamiliar legal requirements can be overwhelming for an early stage entrepreneur.
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Stay organized and keep good records to help your lawyer do their job well. Important emails, documents, contracts, licenses, and sales records will be useful items to have on hand.
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General Business Contracts are contracts that help you run your business on a basic level, including structuring your business and giving shareholder protection.
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It’s easy to overlook the importance of a good lawyer when you’re just getting started. Be sure to set aside enough money in your budget to cover #LegalExpenses in the early stages of your business.
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6 out of 10 startups would seek for legal advice before launching out their ideas and registering them into businesses. You’ll need to consult with a lawyer to cover all your legal bases before starting your #startup
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Don’t be a fool and think you don’t need intellectual property protection. Without protection, you run the risk of having your ideas and products stolen.
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Beware of fraud charges.
Not being familiar with the law can often cost us a lot. In the workplace, for instance, tens of fraud charges can happen without you realizing.
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A trademark is defined as a word, phrase, logo, or other graphic symbol used by a company to distinguish its product or service from those of others.
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Consult Experts to Help You Ask the Right Questions “Even death is not to be feared by one who has lived wisely” - Buddha.
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