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If you’re setting up a newly established business in Australia, raising seed capital is important but you need to stay on the right side of the law as well. Knowing your responsibilities as a startup owner is essential if you want to grow your new company while complying with business regulations. Equipping yourself with the right information from the beginning also prevents you from running into trouble when you start trading.
Staying compliant as a startup owner may seem overwhelming but it needn’t be when you have experts guiding you before you open doors. Hiring professionals such as business lawyers Melbourne entrepreneurs are using will give you the advice you need when structuring your startup. Getting legal help will also keep you and your workers protected when employing people for your company.
Read on to find out how you can get your startup off the ground while keeping it legit!
5 Ways to Stay on the Right Side of the Law as a Startup Owner
1. Seek Out Professional Legal Advice
Hiring a lawyer or seeking legal counsel is vital if you want to avoid breaking important rules as a startup owner. Setting up a new business comes with its fair share of legal requirements and getting the right advice from the beginning will get you off to a good start.
Seeking professional legal help may seem like a costly exercise but it’ll prevent nasty and potentially expensive surprises further down the line! Hiring a professional lawyer with expertise in startups is a long-term investment when you benefit from advice related to employee contracts, intellectual property law and tax matters.
2. Pick the Right Business Structure
Deciding on the right business structure for your startup depends on what your plans are for the company. Picking the right structure is vital for the success of your startup as well as for meeting legal obligations as a business owner. You can choose to be a sole trader or enter into a partnership. Setting up a co-operative is another option you can pick.
A business structure has many implications such as:
- Tax liabilities
- Contractual agreements
- Your liabilities as a startup owner
- Asset protection
Picking the best business structure for your startup from the beginning will help you meet the mission and vision of your company while letting you trade above board.
3. Draw Up Proper Contracts and Agreements
It’s tempting to use contract and agreement templates found online, to save you money. But, this could land you in hot water if you’re not fully clued up on contractual legal obligations. Drawing up proper contracts and agreements with employees, vendors and partners should be done with a business lawyer.
Using incorrect terms and conditions in a contract or agreement could end up costing you if there’s a lawsuit against you. A legal professional will know what clauses need to be included, how to use the right language and clarify terms, protecting you and the other person signing the contract.
4. Protect Your Intellectual Property Rights
Picking a company or domain name already used by another startup will land you in court before you even start trading! Infringing on someone else’s trademark could present you with legal issues you would rather want to avoid. Understanding intellectual property rights and laws is vital if you want to do it right and be protected.
Hiring an expert in intellectual property law will ensure there’s no infringement when choosing your new business brand name. A trademark attorney in New York City is considered the best in this field. This expert can also assist with legal matters related to patents, trade secrets and copyrights, giving you a strong head start over your competitors.
5. Set Up a Proper HR System
If you’re planning to hire workers for your startup you need to have a proper human resources system in place. This empowers you to keep HR documentation in order, avoid potential litigation cases from employees and comply with staffing regulations. Matters such as workers’ compensation, disciplinary procedures, termination notices and company policies can all be professionally managed with a good HR setup.
Knowing that you’re fully responsible for your workers from the beginning and establishing a well-managed HR system will protect you from any disputes or lawsuits. Startups with strong HR practices also benefit from a happier workforce resulting in better business growth.
Making your dream come true by setting up a startup is exciting. Establishing a new business requires understanding legal implications and how to avoid them. Knowing from the start what is required will keep you on the right side of the law before you even open doors for trading. It’ll also prevent you from getting stressed out when thinking about legal liabilities!
Whether you use property lawyers Melbourne startup owners are hiring to draw up lease contracts or seek tax advice from an expert, make sure you’re covered legally as a startup owner. Keeping above board may seem like more hassle than it’s worth. But, knowing you’re operating the ‘right’ way means you can focus on growing your business and making a success of it!