Reading Time: 3 minutes Legal Lessons Newbie Business Owners Need To Know
This is a collaborative post by Ellie Jo with legal tips for business owners.
New business owners often forget about potential legal problems when starting up but there are quite a few to consider.
Legal Tips for New Business Owners
You’re Liable
When you run a business, you do need to be aware of the issue of liability. Essentially, if anything goes wrong, then you’re going to be the one who is held accountable over others. It’s also worth noting that ignorance is not an excuse. So, you can’t just claim to not be aware there was a legal issue. It’s important that you are putting the time and effort into increasing your knowledge around the right areas. Do this and you won’t have to worry about falling short here.
You Need To Protect Yourself
You must make sure that you are protecting any products that you release on the market. What does this mean? Well, you have probably heard the term ‘valuable IP’ or ‘marketable IP.’ IP stands for intellectual property and it’s important because with the right intellectual property, you are going to be able to make sure that you can make a lot of money in the long term. Something to consider here is how to protect the property that you create and that’s where intellectual property law is relevant. You can learn more about this by researching online or even speaking to a lawyer.
You Must Remain Compliant
You do need to be aware of data privacy and protection laws. There are quite a few to be aware of here. If you have any doubts about what you need to achieve, then it’s always worth speaking to a lawyer because they constantly change and evolve. Basically, this is about ensuring that you use any data that you gather and store the right way. The laws are also different depending on the location of your business and who your customers are. If you have a large international business, you have to keep this in mind.
Don’t Forget About Tax
Tax is an area where new companies always slip up. Some forget about it completely, others pay too little and many more try to use poor tactics to cheat the tax system. You can’t afford to make any of these mistakes because ultimately, the costs of doing so will probably be more than you can afford. If you are struggling here, then make sure that you speak to an accountant. They will be able to make sure that you stay on the right track. Do this and you won’t have to worry about falling short.
Remember To Stay Accurate
Last but not least, it’s important that when you are marketing a product or service you maintain a high level of accuracy. If you don’t do this, then you can run into the issue of false marketing. This is going to damage your business and hurt your company in the long run. It could also lead to a legal claim against your business, crippling your power to continue to sell. If you’re worried about the issue of false marketing, just think about the details you would want included as a customer and ensure they are present in the promotion.
Rachel is an Austin blogger, educator, mom, wife, young breast cancer survivor writing about health, saving money, and living a happy life in Austin, Texas.
Rachel has written for HuffPost and Hometalk and has been featured on KXAN, Studio 512, Fox 7 Austin, and CBS Austin.