Starting a new company can be stressful, but it can also be rather complicated, especially when it comes to the legal side of things. Not keeping on top of the legalities is one of the main reasons for businesses failing. We’ve put together a list of the main legal mistakes made so that you can avoid them when it comes to you and your new business.
Trade Mark Search
It’s understandable that you are eager to get started with your business, but please double-check that your company name and domain name are both available. If you can’t own the brand and protect it, then you will put yourself at risk of being sued.
If your business has a shareholder, you should make sure that the contract is watertight. Certain events that may lead to a shareholder no longer being a part of your business are impossible to predict, like death or incapacity; this is why having a detailed contract is of pivotal importance.
If you don’t have the right contract in place, you may encounter problems down the road. Protecting your company and your finances is of pivotal importance, and having clear terms and conditions is crucial. It is always best to get your contracts checked by a legal professional.
Sealing The Deal
Verbal agreements and handshakes are not enough to seal the deal. Although you may trust the person you are entering into business with, if you don’t have a written contract, you are not protected. Always get everything in writing.
If your company has employees, you need to have everything organised to protect yourself and those working for you. Outlining your company policies, signing contracts, and setting everything out clearly is a necessity. Your employment contracts should always include the pay, hours of work, holiday leave, and notice period.
Stay On The Right Side Of The Law
When starting a new business, you should ensure that you are clued up on the law and what is required of you. Make sure that everything is in place before doing anything, and leave no stone left unturned. Don’t forget about tax rules and deadlines, and don’t leave things until the last minute.
If you have recently started a new business, check out our free e-book to make sure you and your company have the very best start. If all of this sounds too confusing and you need someone to help you with your accounts along the way, get in touch and see what we can do for you.