It’s easy to get caught up in the whirlwind of running your own business, but it is vital to stay on top of the legals.
The legal world can be overwhelming at the best of times, but it doesn’t have to be! If you follow these simple steps and seek the help of a professional, the legal work for your business can be as simple as 1, 2, 3. Don’t risk it – inadequate legal protection could quickly turn your dream business success into an expensive nightmare! This article will cover 4 common legal mistakes made by small businesses so you don’t make the same mistakes.
Choosing the wrong structure
Choosing the best structure for your business is crucial. It affects your risk exposure, legal and financial obligations, reporting requirements, and sets the scene for your growth prospects. The four most common business structures in Australia include:
(a) Sole trader
Each of these has different pros and cons so it helps to get legal advice. An experienced business solicitor can help you select the structure that best protects your personal assets, minimises your tax, and takes advantage of other benefits afforded by the law.
Inadequate IP protection
Intellectual property (IP) is an extremely valuable asset for businesses so you want to make sure it’s protected. This ensures other individuals and businesses cannot copy your ideas or compete for your share in the market.
Also, you need to protect your brand. This includes features such as your business name, logo, product design, jingle or slogan. The main types of intellectual property protection are:
(d) Registered Designs
Each of these differ in relation to how they are attained, the types of assets protected and the rights and privileges granted.
Inadequate digital protection
We live in a digital world. Therefore, it is now more important than ever that you get the legals sorted for your website. Some of the essential features include:
- Spam Statement
- Email & Blog Disclaimers, etc.
If you miss just one feature or clause in your T&Cs, your business could face huge liability!
So many businesses have gone under due to inadequate digital protection and we’d hate to see that happen to you.
While doing it yourself is the latest popular trend, there are some things you really shouldn’t do all by yourself – and the legals for your business is one of them. Sure you could save a few dollars upfront, but not working with an experienced lawyer can cost you a lot more in the long run!
There is so much involved with starting a business, and much of it requires an in-depth understanding of law and business. Get a professional on your side to give you peace of mind that your business is legally protected.
Do you have any other tips for business? Share with us in the comments.