Launching a new product or business is an overwhelming experience, with entrepreneurship requiring that you become a jack of all trades. But when it comes to legal issues, taking the DIY approach is a big mistake, and it’s vital you don’t underestimate the wide range of legal issues young businesses face. Scaling might be the top priority for your startup, but what about the legal implications of rapid growth? Don’t leave these considerations until it’s too late.
Be sure to tick off this legal checklist before launching your startup.
Top 5 Legal Issues Startups Should be Aware of
The path to long-term success for every company is paved with legal consequences. Here are the key legal challenges startups face:
1). Business Structure
Your business structure will influence your liabilities and capacity to acquire funding. Make sure you have an agreement in place for outlining ownership, operational responsibilities, investment, and equity among company founders.
2). Intellectual Property Protections
Initiate appropriate patents, copyrights, trademarks, and trade secrets. Protect your intellectual property including inventions, logos, and software to prevent costly legal battles when other companies infringe on your IP.
3). Non-disclosure Agreements
Issue non-disclosure agreements to protect your business strategy, trade secrets, algorithms, client information, and more.
4). Employee Contracts
Issue employee contracts. These legally-binding documents are there to protect both your employees’ rights and your company’s.
5). Privacy Policies