Not starting the company as an LLC or corporation

One of the first decisions that an owner must make is in which legal form to operate the company. However, owners often start a company without consulting a lawyer and, as a result, they are often taxed at a higher rate and may be subject to momentous liabilities that could have been avoided if the company had been formed as a corporation or as a limited liability company.

Not coming up with a good standard form contract in favor of your business

Almost every corporation should have a standard form contract when dealing with customers or clients. Below are a few key things to think about when creating your own form contract:

• Get sample contracts of what other companies do in the industry. No need to re-invent the wheel.
• Get an experienced business lawyer to do the drafting.
• Don’t make it so absurdly long that the other side will throw-up their hands when they see it.
• Make sure you have clearly spelled out pricing, payment due dates, and penalties or interest owed if payment isn’t made.

Lack of employment documentation

Companies often run into problems when they do not maintain suitable employment documentation.

Not protecting intellectual property

If you have established a unique product, technology or service, you need to think through the appropriate steps to protect the intellectual property you have created.

If you need more advice, let us know how we can help.