Starting a business is exciting and filled with opportunities, but it’s also risky. No business is perfect, and that includes startups. When starting a business, it’s important to do everything by the book. This means incorporating your business, getting the requisite licenses and permits, and understanding the legal landscape. Making mistakes early on can be costly and time-consuming to fix.
However, there are a lot of things that can go wrong, and if you’re not careful, you could end up making some costly legal mistakes. Here are four legal mistakes that small business lawyers in Vancouver help to avoid when launching your startup company.
Not Incorporating
One of the biggest mistakes you can make is not incorporating your business. Incorporating offers a number of benefits, including limited liability protection and tax advantages. If you’re not incorporated, and something goes wrong, you could be held personally liable for the debts and liabilities of the business. This is a risk you simply don’t want to take.
Not Getting the Proper Licenses and Permits
Depending on the type of business you’re starting, you may need to get certain licenses and permits. It is where a business lawyer in Vancouver can help. For example, if you’re starting a restaurant, you’ll need a food license. Failing to get the proper licenses and permits can result in costly fines. It’s important to research the licenses and permits required for your business and to get them before you start operating.
Not Drafting a Shareholders Agreement
If you have partners or investors, it’s important that you draft a shareholders agreement. This agreement sets out the rights and obligations of the shareholders and can help prevent disagreements or disputes down the road. Without a shareholders agreement, you could end up in a costly legal battle with your business partners.
Not Protecting Your Intellectual Property
If your business has any type of intellectual property, you need to make sure it’s properly protected. This could include patents, trademarks, or copyrights. If you don’t protect your intellectual property, you could lose the rights to it, and someone else could end up profiting from your hard work.
Not Complying With Employment Laws
If you have employees, you need to make sure you’re complying with all applicable employment laws. This includes things like paying minimum wage, providing workers’ compensation, and obeying anti-discrimination laws. If you don’t comply with the law, you could face steep fines or even criminal charges.
Not Complying With Environmental Laws
If your business is subject to environmental laws, you need to make sure you’re in compliance. These laws can be complex and confusing, so it’s important to seek legal advice to make sure you’re doing everything you need to do. If you don’t comply with environmental laws, you could be subject to hefty fines and penalties.
Not Having adequate Insurance
Another mistake to avoid is not having adequate insurance. If something goes wrong and you’re not properly insured, you could end up having to pay out of pocket for damages or injuries. This is a risk you simply don’t want to take. Make sure you have adequate insurance coverage for your business.
Not Having Contracts in Place
If you’re going to be working with other businesses or individuals, it’s important to have contracts in place. Contracts outline the terms of the agreement and can protect both parties if there’s a disagreement. Without a contract, you may have a harder time enforcing your rights and could end up losing money.
Launching a startup company is a big undertaking, but it’s important to make sure you do it the right way. By avoiding these four legal mistakes, you can help your business get off to a strong start. Hire business lawyers in Vancouver, BC, to get help!
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