Protect your personal assets, by properly forming and operating a corporation or LLC. For efficient, effective corporation or LLC set up, contact Ms. Gervase at firstname.lastname@example.org.
For our "Top 10 List" to help protect businesses and families, see below.
“TOP 10” LEGAL MISTAKES BUSINESSES MAKE
1. Not Incorporating Timely. Affects financing and value of founders’ contributions.
2. Forming the Wrong Ownership Structure. Investors prefer the stock/interest structure of a corporation/limited liability company. Also, potential unlimited personal liability for company’s debts.
3. No/Insufficient Organizational Documents. Must follow the formalities and create/maintain required documents to limit personal risk.
4. Not Considering Securities Laws. Investors want a healthy profit and consult their own advisers. There’s risk if appropriate disclosures were not given and documented in investment documents per securities laws.
5. Not following Founders’ and Employees Non-Compete Agreements. Many agreements prohibit an employee from competing with their (former) employer. Litigation is expensive, time-consuming and very distracting.
6. No/Insufficient Employment Agreements. Employees may leave to compete with you and acquire intellectual property rights to their inventions related to your business. There is a high potential for disputes if employees’ and company’s rights and responsibilities are not clearly defined in writing.
7. No/Insufficient Vendor/Customer Written Agreements. A handshake is worth the paper it’s written on. It’s difficult to uphold a verbal agreement in court. A properly written agreement can protect interests and rights, save a lot of stress and the legal expense of trying to enforce rights.
8. Litigation. Litigation is VERY expensive. Don’t spend time focused on litigation. It’s cheaper to take steps to prevent disputes (preventative legal work). It’s not unusual to pay more in legal fees/costs than to settle a dispute.
9. Not having required licenses and insurance. This limits the types and amount of work that can be obtained, and exposes the company, individuals and perhaps customers to substantial risks.
10. Not getting Legal Advice. Trying to save on costs by not hiring an attorney, or cutting and pasting from legal documents found online is a penny-wise and pound-foolish. Sources may not be credible, may not be appropriate for your circumstances, and may not comply with the law. Legal documents that don’t protect your interests may cost you much more than the cost to hire counsel. A seemingly simple misplaced comma or word can drastically change the interpretation of a document.
a. Not getting legal advice about Business Continuity Planning to protect the livelihood or you and your family, and your employees and their families.
b. Not getting legal advice about Protecting your Family, Designating Guardians for minors and pets, Appointing Agents to make Financial and Healthcare decisions, stating your Estate Planning Wishes, and other Life-Planning Events.
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