Incorporate Early
Choose a suitable business structure (LLC, S-corp, or C-corp) to establish legal protection and credibility.
Separate Personal and Business Finances
Open a dedicated business bank account to avoid commingling funds.
File Necessary Legal Documents
Ensure Articles of Incorporation, operating agreements, and bylaws are in place.
Read Also:
- https://swiftlawadvisor.com/20-critical-corporate-law-policies-for-business-owners/
- https://swiftlawadvisor.com/25-legal-challenges-that-corporations-face-today/
- https://swiftlawadvisor.com/30-corporate-law-myths-debunked/
Protect Intellectual Property
Secure trademarks, patents, copyrights, and trade secrets to safeguard your ideas.
Sign Non-Disclosure Agreements (NDAs)
Use NDAs when sharing sensitive information with third parties or potential investors.
Define a Clear Equity Split
Record equity ownership and vesting schedules between co-founders.
Use Vesting Agreements for Founders
Protect the business in case a founder decides to leave early.
Comply with Securities Laws
Comply with regulations when issuing shares or raising capital from investors.
Prepare a Founders’ Agreement
Define roles, responsibilities, and mechanisms for dispute resolution between co-founders.
Avoid Informal Agreements
Record all partnerships, loans, and investments in formal contracts.
Maintain Proper Records
Maintain detailed meeting minutes, resolutions, and financial records for accountability.
Select the Right Jurisdiction
Consider registering in a state like Delaware, which is friendly to businesses.
Comply with Employment Laws
Ensure employment contracts, benefits, and classifications are legal.
Secure Key Licenses and Permits
Check local, state, and federal requirements to operate legally.
Create a Cap Table
Track equity ownership to avoid disputes and confusion.
Draft Strong Client Contracts
Clearly outline terms, deliverables, and payment conditions in agreements.
Include Indemnity Clauses in Contracts
Limit your liability in case disputes arise.
Avoid Worker Misclassification
Correctly distinguish between employees and independent contractors
Tax Obligations
Comply with local, state, and federal tax laws using a tax professional
Obtain Required Insurance
Have general liability, professional liability, and workers’ compensation
Stay on Top of Data Protection
If under the GDPR, CCPA, or another data privacy regulation, apply the necessary requirements.
Have a Clean Exit
Plan for potential mergers, acquisitions, or business sales from the beginning.
Use a Standardized Employee Handbook
Define policies, expectations, and legal obligations for all employees.
Draft Clear Terms of Service and Privacy Policies
Ensure your website and app comply with online consumer protection laws.
Understand Your Funding Options
Know the legal implications of loans, angel investments, and venture capital.
Protect Your Brand Online
Register domain names, social media handles, and trademarks early.
Stay Up-to-Date with Corporate Compliance
File annual reports and pay necessary fees to maintain good standing.
Reduce Personal Guarantees
Avoid exposing personal assets to business loans or leases.
Business Continuity Plan
Plan for possible disruptions so the company can run smoothly.
Avoid Overpromising in Advertising
Comply with truth-in-advertising laws to avoid lawsuits or fines.
Secure Software Licenses
Ensure compliance with software usage agreements to avoid infringement claims.
Define IP Ownership in Contracts
Specify ownership of work products in freelance or contract agreements.
Prepare for Conflict Resolution
Insert clauses on mediation or arbitration to resolve disputes expeditiously.
Maintain Your Corporate Veil
Steer clear of actions that may cause the corporate veil to be pierced and result in personal liability.
Know International Laws
Comply with foreign laws when running a global startup.
Seek a Lawyer Frequently
Engage a business attorney to mentor you through complicated matters of law.
Be Careful of Equity Compensation
Understand the legal and tax implications of offering stock options to employees.
Comply with Anti-Discrimination Laws
Ensure hiring, promotions, and workplace policies are in compliance with federal and state laws.
Implement Cybersecurity Measures
Protect customer and company data from breaches and unauthorized access.
Prepare for Due Diligence
Keep your legal, financial, and operational documents in order for potential investors or buyers.
