What are my legal expectations when starting a small business?
If you have decided that it is time to start that business you’ve been thinking about - congratulations! This may be one of the best things you ever do—if you do it properly.
As a small business lawyer, I can help cut through the overwhelm when it comes to setting up your business and support you to set the foundations for success.
All of the suggestions and guidance in this article are vital to long-term success in any small business.
Here are 6 ways your small business lawyer can assist you start your business;
1. Which business structure?
Talk to your small business lawyer and get advice on your business structure options. This can make a real difference to the way your profit is distributed and to your personal asset protection.
Whether a sole trader is right for you or if a company structure or a partnership better suits your needs, your small business lawyer will help you identify this and prioritise getting the structure set up properly.
If you have business partners talk to your small business lawyer about your exit strategy. If you get this wrong, you can find yourself with all sorts of problems should you (or one of your partners) wish to leave at some stage.
2. Are you complying with the law?
Are you complying with all applicable laws – for example, the Australian Consumer Law (ACL), Privacy laws, Fair Work laws to name but a few? Better to be safe than sorry, consult with your small business lawyer!
One of the most important things for any small business is a good set of business legal documents.
Business legals consist of three main documents:
· Business Terms & Conditions (often also referred to as Terms of Trade, or a Business Services Agreement).
· Privacy Policy.
· Website Terms and Conditions.
These documents will ensure you are complying with your obligations under the ACL and Privacy laws.
Having business legals that are tailored to your specific offerings is vital to ensuring your business complies with the law and is set up to for success.
3. Growing your team?
Know the difference between employees and contractors when working with others and growing your team. Talk to your small business lawyer to get this right.
If you have a team in your business, whether they are employees or contractors, you need to be sure you have engaged them correctly; know what you are required to pay them and what their legal entitlements are, and you need to have proper employment agreements or independent contractor agreements in place.
For more on the importance of getting this right check out our resource ‘Growing Your Team | Must-Haves To Include In Your Employment Agreements’ and Engaging an Independent Contractor | What the High Court has to say. Outsource with Ease In Small Business might also be helpful.
4. Intellectual Property to protect?
You need to be clear on what intellectual property you own, and what you have exclusive use over. Your small business lawyer can provide you with helpful advice here.
If your business needs to have exclusive use over your business name or tagline, for example, then you need to be proactive with this and seek advice on whether you can apply for a trademark.
If your business produces original content or material by way of articles, photography, design, or blogs, then you need to know your rights relating to your copyright in this material. Your small business lawyer can tell you your rights and, more importantly, help you protect them.
5. Want to get paid?
Cash flow is the cornerstone of any small business, so having your systems and processes set up to make being paid as simply and easily as possible is vital.
The most important part of this process is to have your business terms and conditions tailored properly to your business (trust me, this is not the time for DIY!) Your small business lawyer can ensure this is looked after so you get paid!
6. Need Insurance?
Insurance is a must and your small business lawyer can provide advice and referrals for you. Something unexpected will always happen - expect the unexpected and get a head start by holding the necessary insurance policies for your business.
What about the cost?
Ask upfront for an estimate of costs (or professional fees). Lawyers are required to provide this information to you. Your circumstances may change along the way, and what you need may change. You can keep on top of the estimate of legal fees simply by asking.
Your small business lawyer will work with you to help you set up your business. For more information check out our resources Legal Advice for Small Business l Ultimate Guide and Australian Law 101 – Guide for Small Business. Working together should be easy, and you should feel supported and confident in who you are working with.
We’ve also made a Legal Checklist for Engaging Independent Contractors which you can find here.
Want to get in touch and find out more about how I can help you setup your business? Click here to enquire now.