Before you start up a business, make sure you keep an eye out for these legal mistakes:
Trusting the wrong advice
You shouldn’t follow advice on legal matters and issues unless it comes from a lawyer. So if you want your business to succeed, hire a professional Austintown Business lawyer to help you, says John Grundy.
Choosing the wrong entity
Will it be a proprietorship or partnership? Just remember to choose the entity that best fits your business to prevent any legal problems and hassles down the road. If you aren’t sure, consult your lawyer for advice.
Lack of a vesting schedule
When you issue shares to your co-founders, you need to make sure it’s aligned with a vesting schedule. Your lawyer can help you create a vesting schedule to essentially set out how a co-founder earns their shares over a given period of time. So if a co-founder leaves the company before that time frame is up, you can protect your investment.
Fund-raising efforts violate securities laws
If your company raises money without adhering to state and federal securities laws, then your company can face legal charges. Your business lawyer can prevent this by checking everything and making sure all your documents comply with securities laws and regulations.
Not protecting your Intellectual property
Your lawyer can help you protect your ideas, protocols, processes and other intellectual property you own. That way, no one else can steal them and profit off of them.
Not issuing non-disclosure agreements
If you share inventions and forget to issue a non-disclosure agreement, someone could file for a patent application on your invention before you could take one out, effectively stealing the invention away from you. So ask your lawyer to help you draw one.
Hiring the wrong lawyer
Don’t hire just any lawyer. Get someone who specializes in business law. That way, you’re sure to get the legal support and assistance you need.