I saw this article in the October 1st 2013 issue of All Business Experts by Richard Harroch, a Managing Director and Global Head of M&A at VantagePoint Capital Partners and had to share it with you. He focuses on the ten most common mistakes that your small business makes on start up. Avoiding these mistakes will prevent your company from getting into difficult legal situations as it grows and prospers.
1. Not having a founder or “pre-nuptial” agreement between co-founders
2. Not choosing the right legal form of business to gain protection from higher taxes and significant liabilities
3. Not having a great standard form contract in favor of your company when dealing with customers or clients.
4. Not complying with securities laws when issuing stock to angels/family/friends
5. Lack of employment documentation to be signed by most, if not all, employees
6. Not carefully considering intellectual property protection
7. Not taking into account important tax issues
8. Coming up with a name for the company that has trademark issues
10. Not having the right legal counsel
For the complete article, please see 10 Big Legal Mistakes Made by Start-Ups.