So, you’ve decided to take the plunge and start your own business. It’s exciting and you can’t wait to start getting customers, hiring staff and watching your business grow.
This is all very well and good, but sometimes, amidst all this excitement and hard work, business owners can forget about the many legal risks involved.
If you’re thinking of starting up a new business or setting up a new company, we’re here to help ensure you’re aware of the major legal risks which you may face, so that you can prepare accordingly.
Incorrect legal structure
A legal structure for a business doesn’t matter when you’re first starting out, right? Wrong.
Your business may only be in start-up phase now, but your goal is likely for it to grow. This is why the way your business is legally structured from the outset, is so important. Your business legal structure impacts on your tax, personal liabilities, asset protection, reporting obligations, and more – the right business structure can save you valuable time and money. So, it’s even more important to get it right.
Absence of a Founder’s Agreement
Planning on starting your business with co-founders? Then a Founder’s Agreement is absolutely essential.
The help of a business lawyer will enable you to outline each owner’s rights and responsibilities, a very important step for avoiding conflicts between co-founders.
Your Founder’s Agreement is insurance against the unexpected.
Lack of the correct licenses
Every business function performed will, no doubt, fall under some sort of legal regulation and it is important that your business operations are compliant.
You must know what these are before starting your business and ensure you obtain the correct licences and permits.
Non-compliance can have serious legal ramifications for you and your business.
No legal protection for intellectual property assets
Like most business start-ups, it’s likely that you have a unique service, product or idea. This unique service, product or idea must be protected.
How? With the assistance of a business lawyer, it can be patented, and secured with trademarks and copyright laws.
What you may not know, is that the ACCC (Australian Competition and Consumer Commission) requires you to post Terms and Conditions on your website.
Don’t forget about the many legal risks involved in a start-up, amidst all this excitement and hard work.
Speak to professionals to ensure your business is set up correctly and well protected, so you can continue doing what you do best… worry-free.
At Crest Accountants on the Gold Coast, we have over 40 years’ experience in acccounting advice for startups , working with and advising about the processes, systems, and plans, essential to the overall structure and success of a business. We take the time to get to know our clients so that you feel confident we have your best interest at heart. Crest Accountants, accountants you can trust.
Contact us and book an appointment to discuss your business accounting needs today.