If you are a budding entrepreneur, then there’s a chance that the last thing on your mind is legal issues. Unfortunately, it’s legal issues that can easily trip you up when you begin to venture into the world of business. If you want to make sure that you avoid some of the top mistakes that a lot of company owners make, then this is the guide for you.
No Incorporation
There are far too many entrepreneurs out there who do not establish the correct legal structure for their company. At some point, this hurts because you want to get other investors, or you have a co-founder leave. You may also get sued by an employee. Either way, if you do not have the right legal structure for your company, then this can open you up for issues such as legal liability. If you want to help yourself, then you have to determine if the best legal structure for you would be an LLC, an S corporation or even a C corporation. Do your research and find out what the rules are in your state as well.
No Agreements
When the time comes for you to sell your company or if you have a founder leave, then you need to have a shareholder agreement as this will protect everyone. It will also guide people as to the actions they should be taking. If you do not have an agreement like this, then you may find that chaos ensues. Have an attorney draft a legal agreement that shows how issues are going to be decided. If you do this, then you will have a higher level of protection.
Not having the Right Training
If you want to make sure that you get the best result out of your business, then you have to make sure that you have the right training. If you don’t then you may find that you end up being sued because you are not legally allowed to do a job or even operate in a certain area. If you can focus on having the right training, then this will help you far more than you realize. If you want to go into construction, getting a scaffolding license would be wise. Check out scaffolding QLD & NSW to find out more.
No Resource Guidelines
There aren’t many companies out there that get into trouble because they do not have an employee manual. There are however, some very famous examples of companies that go bankrupt over lawsuits from former team members. If you can, you need to seek the advice of someone who works in human resources. This will help you to formulate some of the policies you need to fit your company.
Not getting Trademarks
If you can, you have to make sure that you get the right trademark for your company. Many companies fail to take the steps required to protect their company, and before long, another company comes along to steal the spotlight. This is the last thing you need, so don’t overlook things like this.