There’ll certainly be plenty to think about when you are in the process of setting up a new business. You will have to get everything up and running in order to start operating or producing products in order to keep up with demand. On top of that, you will need to focus some of your attention on marketing even before you have even opened your doors to the public. That’s so people will be excited for your launch and you can start off with high sales right from day one.
However, one thing that many new entrepreneurs often forget about when they are in the process of setting up a new company is the legal side of running a business. There’s a lot that you need to remember when creating a business, and it’s important that you don’t forget about any legal points. If you do, you could end up on the wrong side of the law and facing a pretty big fine.
So, if you are going to start a small business in the near future, you might want to keep on reading. Here are some very important legal dos and don’ts.
Do Take Advantage Of Legal Platforms
First of all, it’s a good idea to automate some of your legal work. The kind of legal tasks that you will need to carry out on a regular basis can be quite time-consuming and could end up distracting you from other important tasks and operations. Thankfully, there are a few different platforms that you can use to ensure all these tasks and processes are fully automated. If you anticipate being heavily involved in any future cases, then you might want to invest in legal case management software so that you can efficiently keep on top of each case. If you aren’t entirely sure which legal platforms are worth purchasing for your company, it could be worth asking any fellow entrepreneurs for their recommendations.
One major mistake that many new entrepreneurs make is restricting their budget for their legal department. If anything, you should allocate a lot more cash to your legal budget than to any of your other departments. Even though you shouldn’t need to eat into this budget if all goes well, it’s best to allocate more money than you will need. You then have this extra cash to act as a safety buffer. That way, if you ever are involved in a drawn-out court case that becomes expensive, you’ll always have the cash to fall back onto.
Do Find A Local Lawyer
Even though you should hopefully never have to enlist their services, it’s still a good idea to find a reputable local lawyer who you can use when needed. In fact, it’s best to find a few lawyers who each have different specialities. That way, you will have a legal expert to use in most cases that you could end up in. Of course, for any business owner, it’s possibly most important to know a good corporate lawyer as they will be able to answer any queries or small questions that you might have about the everyday running of your business.
Don’t Forget Legal Insurance
You should also make sure that your business has plenty of legal insurance as well. In the event that someone does try to sue you and you are taken to court, then your insurance will pay out to cover any legal fees that you incur. If you have a complete cover, then the insurance might even pay out to cover any damages that you have to pay to the other party. Be careful to shop around for some good protection, though, as providers’ policies can vary widely. You should also read the small print very carefully before you sign the dotted line and commit to a policy. Then you can have peace of mind knowing exactly what you are signing up for and what you will be covered for.
Do Take Out Permits And Licenses
Before you can start legally trading as a business, you might need to get some permits and licenses. The ones that you need will depend on which industry and sector you are operating in. For instance, if you are selling fresh food products, then you will need to get some health and safety permits and follow very strict regulations. If you fail to get the right permissions, then you might be legally operating and could be shut down as soon as you are found out. This could also come with a very hefty fine.
Don’t Dispose Of Important Contracts And Documents
These days, the safest way to store any paperwork is to keep digital copies on cloud storage. This way, they will be well protected from hackers and viruses. However, you should also store a hard copy of each document and contract as well. In some cases, a digital copy may not be legally acceptable and you might have to produce a signed original. When storing originals, make sure they are in a locked cabinet that is water and fireproof.
Do Always Write Up Contracts
When you start a new relationship with a freelancer or a client, it is always necessary to write up a contract between the two of you. This helps to iron out any potential issues that might crop up in the future. The contract needs to outline the scope of work that is to be carried out as well as other details like remuneration and how the relationship can be brought to an end. If any disputes or disagreements were to occur then you can always refer to the contract to try and quell them. If things are taken further and you end up in court, then the contract will be used in evidence. Hopefully, things won’t escalate that far though!
As long as you remember all of these important legal dos and don’ts, you can be happy knowing that you’ve set your business up well. Success shouldn’t be too far away!