The Top 10 Legal Pitfalls of Business

When you put so much of your heart, soul and time into your business, you want to make sure it will not all be taken away from you. Being an entrepreneur often means that we live in the world of ideas, rather then details. However, correctly setting up the legal details of your business will help to ensure your hard earned sweat will remain for your benefit.

BRW Jan 10 - Feb 6 2008 lists these as the Top 10 Legal Pitfalls for Small Business.

1. You die unexpectedly and your business stops dead too. Have a will with a clause allowing a trustee to take over.
2. Your business is sued and your personal assets are up for grabs. Check that your legal structure of your business protects your personal assets from business problems.
3. You don't have a shareholder/partnership agreement.
4. You don't have terms and conditions written in your dealings with clients, customers or employees.
5. You fail to protect your IP. Use licenses, apply for patents, non disclosure & confidentiality agreements etc
6. You don't have written contracts with your employees, ensuring there are clauses about confidentiality and stealing customers.
7. You don't read the small print on important contracts. When you sign it, you are stuck with it, so READ it!
8. You fail to protect your business/product names with trademarks, and URL domain names close to yours.

I can see that I need to add terms and conditions to our customer booking forms, add to my will for a trustee and always read the small print on the contracts no matter how long it takes!

So how is the legal side of your business shaping up?