Starting your own company is a brave step that requires careful consideration as well as passion. Sometimes, it’s easy to get caught up in the excitement and neglect certain areas.
It’s important to make sure that your new business is insulated legally. Failure to do this could ultimately set you up for failure. Outline below are some legal mistakes that startups should avoid.
1. Not having contracts in place
Perhaps you started your business with a friend and other close associates. These are people you trust wholeheartedly. While you take them at their word, this doesn’t mean you should literally do this with business decisions.
It’s important that every professional relationship in your firm is backed up with legal agreements. This includes employment contracts for your workers, partnership agreements and services agreements.
If your business model relies on trade secrets, patents and other forms of intellectual property, you may wish to implement non-disclosure agreements. This will prevent your intellectual property falling into the hands of your rivals.
2. Not obtaining licenses and permits
Depending on the nature of your company, you may need to secure licenses and permits. For instance, if you serve alcohol products, you may need to obtain the relevant licenses for your state. The state you are in may also impose certain zoning restrictions which limit your business activities. As a startup, it’s easy to fall into the trap of neglecting these factors.
There is no reason why your startup can’t be a success. To get off to the best possible start, make sure you have sought legal guidance to avoid the aforementioned errors.