Small Business Tips
Don’t Make These Legal Mistakes When Starting Your Small Business | Q&A with Business Lawyer
One of the best investments we’ve made for Fuze Branding has been working with an attorney who specializes in working with businesses and start-ups. Seriously. The peace of mind of knowing that we took the right steps when setting up our business and help with trademarking our company alone makes it worth it.
And that’s where Grant Atkinson comes in.
Grant is the Founder and Managing Attorney of Framework Law Group, and he’s officially our go-to guy when it comes to tricky business law or trademark questions. Before starting Framework Law, Grant served as lead litigation and transactions associate with a firm in Downtown Los Angeles. He’s also lead workshops with General Assembly ranging from legal aspects of entrepreneurship, legal and financial planning, and intellectual property. In his spare time, he’s a photographer, a musician, and a passionate entrepreneur.
Grant was kind enough to chat with us and answer some of the questions we come across when working with small businesses or entrepreneurs.
Q | What’s the number one mistake Small Business owners make when launching their new baby out of the nest?
There are a lot of important legal steps to take when starting a new business. The most common issue we see is businesses getting into disputes with their co-founders, clients, and vendors, because they didn’t have a well drafted contract in place protecting their interests. However, there a number of other important steps to take including registering your business entity, securing your intellectual property, and obtaining all necessary licenses and permits to operate your business.
For a full list of our recommended steps, check out our Eight Step Venture Checklist.
Q | Follow up question – How can it come back to bite you later?
If you operate your business without an LLC or Corporation, your personal assets may be at risk. If you don’t secure your intellectual property, your business name, logo, creative works, and inventions may be left unprotected. If you work without contracts, disputes may arise with your co-founders and clients. If you don’t make appropriate government filings, you might not be able to operate or will have to pay penalties.
Fortunately, all these mistakes are really easy to avoid.
Q | S Corp or LLC? What does it all mean? How do you choose the best/most appropriate business structure for your new business?
Both entities will protect your limited liability status and may facilitate preferential tax treatment. LLCs have more flexibility, less upkeep formalities, and can accommodate both simple or complex business structures. S-Corps work great for simple business structures, often with just one or two owners. If you happen to be getting venture capital, you may need to be a C-Corp. Always consult with your attorney and accountant to pick the best entity for your business. For a more detailed rundown, check out our legal guide.
Q | Is trademarking a business name really worth it? Can I use my new company name before it’s trademarked, or will I get sued?
Trademark registration isn’t required to use a business name. However, if you want to secure the exclusive rights to your business name to prevent others from stealing it, its definitely worth registering. Further, you should always make sure you aren’t accidentally infringing someone else’s business name, because thats when you might risk getting into legal trouble.
Here is some more info about vetting and securing your trademark.
Q | What is the most common mistake you see when it comes to contracts or client agreements?
Lots of business owners make their own DIY contracts that include prices and services, but don’t include a number of other important provisions regarding intellectual property ownership, changes to the scope of work, limitations on liability, and dispute resolution. These missing terms are often the cause of confusion and disputes in the future. A better practice is to work with an attorney to get some well drafted day-to-day contract templates in place which you can use for all your reoccurring contract needs.
Q | Do I really need an attorney on retainer…Or can I just get my Google Juris Doctorate?
An experienced attorney is a crucial member to have on your team! We definitely encourage entrepreneurs to google the law and stay informed, but your craft is your expertise, and we recommend leaving the details of the legal craft to the lawyers. Not all law firms require you to keep them on retainer. Some attorneys can just be called up as needed a la carte.
Q | If you could only give one piece of business advice for the rest of your life, what would it be?
It’s going to be a crazy adventure! Always look at the big picture and have fun with it 🙂
If you’re looking for an awesome legal partner to keep your business on the right side of the law and help you protect your biggest investment, your business, check out Grant and his team at Framework Law Group.
