10 Legal Mistakes Your Start-Up Should Avoid

by Jim Smith on October 7, 2013 · 1 comment

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.

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Here are the ten most common mistakes:

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

9. Not having a good Terms of Use Agreement and Privacy Policy for your website

10. Not having the right legal counsel

For the complete article, please see 10 Big Legal Mistakes Made by Start-Ups.

{ 1 comment… read it below or add one }

Heather Mccarthy October 25, 2013 at 9:40 am

Nicely written blog. But I just wished that a bit more detailed account of these legal mistakes could have helped better.

I just hope that my business start-up works out to be great.

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