5 Useful Pieces Of Legal Advice For Establishing A Startup In 2021
After the rough ride in 2020, the New Year may be just the right time to establish your startup. But before you go ahead, you need to make sure that you have the right action plan in place. From researching the market to knowing your competition, gathering funds, managing taxes, and collating a business plan, there is a lot you will need to do.
It may be easy to miss legal aspects amid the workload, but a complacent attitude can land your new venture in big trouble. Fortunately, there isn’t much you need to do to secure your startup from legal issues. Here are some useful pieces of advice that you can follow to keep your new business legally sound in 2021 and beyond.
Draft the founders’ agreement carefully
If you have founders and partners on board, it is best to formalize the arrangement with a legal agreement. Drafting it carefully with the allocation of shares and responsibilities is vital for preventing disputes between founders in the long run. Have the agreement drafted by a startup lawyer because they will make sure that it has the right language and clauses to keep the business on the safe side.
Protect your brand
You need to be careful about selecting the name for your venture because copyright infringement is a serious legal issue. At the same time, you should also go the extra mile to safeguard your brand name. You can do it by registering a limited company, securing your intellectual property, including brand name with a trademark, and buying domain names. Businesses selling a design or technology should register a patent.
Safeguard against injury lawsuits
Safeguarding your business against injury lawsuits is equally crucial because you can expect to face them sooner or later. A vehicle safety program is vital for a startup operating fleet vehicles or letting employees drive company vehicles. Experts at Keith Williams Law Group recommend business liability insurance to keep you financially ready for lawsuits and compensation claims. It is equally important to take steps to prevent lawsuits related to premises mishaps, defective products, and COVID outbreak in the current times.
Have contracts with suppliers and customers
Another legal aspect that a startup entrepreneur cannot ignore is contracting with suppliers and customers. Proper contracts for services and products go a long way in preventing disputes and losses for a new business. Clauses related to deliverables, deadlines, termination, and terms of business can be complicated. So it is best to let an expert handle the drafting and language of these contracts.
Stay a step ahead with employee agreements
A new business cannot run without a reliable team that takes it ahead. While you must focus on employee engagement and satisfaction, proper agreements are also vital to cut down the chances of issues and safeguard the business from dishonest workers. Pay attention to key aspects like compensation, leaves, incentives, health and safety, termination, and discipline when preparing employee contracts.
Being vigilant about the potential legal issues can keep your startup safe from massive challenges. It lets you sideline disputes and lawsuits, which can cause immense damage to a new business going through the evolutionary phase. A seasoned startup lawyer is the right professional to keep your venture legally sound and secure.