You’ve gained some valuable experience working for various firms over the years. However, you’ve always had a burning desire to be your own boss and form a company.
You have an idea, projections and a list of team members who can help you grow the business. Something that you don’t want to neglect is the legal aspects of your new company. This is one area that’s easy to forget amidst all of the excitement. Outlined below are a few mistakes that you want to avoid.
A lack of written agreements
You’ve identified team members and even a business partner. You trust them and are confident in their skills and ability. Nonetheless, it’s important to remember that business relationships are very different from personal relationships. It is in your best interests to back up your business relationships with contracts. This means partnership agreements with your second in command and employment contracts for your team members. Not only do written agreements protect you, but they also provide security for your workers. Many startups fall into the trap of working with informal agreements which nearly always backfires.
Failing to keep accurate records
As a business owner, you’re going to have a lot more responsibilities in terms of compliance with tax and other areas of the law. The best way to keep on top of this is to keep accurate records. This doesn’t have to be done by using old-fashioned filing cabinets. Many businesses now utilize online clouds to store vital information. This way, your records can never be lost. Failing to keep detailed records of your finances and transactions can mean getting into legal trouble further down the line.
Starting your own company can be very rewarding but there are going to be challenges. Seeking some legal guidance each step of the way will help ensure that everything remains above board.