5 Legal Tips Every Business Owner Should Know
/Happy June, and happy end-of-the-school-year to all who celebrate! It’s a momentous June for my family because our eldest graduated from 8th grade at the end of May. It truly seems like yesterday that we were sending her to the first day of kindergarten. We had total faith that our independent (even then), kind and wise daughter would handle school beautifully. When it came to being school parents, on the other hand… well, we didn’t know what we didn’t know. Thankfully, through trial and error, by the time our other two children started school, we felt like pros!
It was a bit like that with my two businesses. When I launched Carolyn Sutton PR, I was confident that I could deliver unique expertise and results for my clients, but I knew I had a lot to learn about running a successful business. Fast forward 12 years to 2021 when I created Brand Your Brand, I was surprised at how much of the business side of things felt like second nature.
One of the biggest game changers was knowing that I had a team of experts I could call on, including my legal advisor, Alli Elmunzer. As an attorney for entrepreneurs, Alli has been key to helping me set up my businesses, ensure my brands are protected and navigate all things legalese. Here, she shares her top 5 legal tips every entrepreneur should know when starting a business.
Give Your Business Its Own Legal Entity
One of the first things you should do when starting a business is set up an LLC or another sort of business entity (although LLC is usually best for small businesses) to protect yourself, your family, and your personal assets from any kind of liability. This includes opening a separate business bank account so that your personal bank accounts cannot be accessed if your business is ever sued. It’s an easy process, the business division on your Secretary of State’s website will have everything you need to know, including what licensing you might need.
Trademark Your Business Name
An LLC is a state entity, but you also need a federal entity, which is a trademark. Choosing a name for the business that you can trademark is of paramount importance. Alli suggests Googling the name and checking the U.S. Patent and Trademark Office’s website to see if anyone else has a similar name registered before you start setting up your social media and website. If you want to avoid a future cease and desist order later, consider having a trademark attorney do a search. For a great resource on trademark information, check out Alli’s blog.
Don’t Do Business Without a Contract
“You should 100 percent always have an agreement in place with any person you’re working with. Don’t do business without one of those in place!” Alli says. Your contract should lay out all the terms to ensure both parties are protected and on the same page as far as compensation, length of the agreement, deliverables, etc. You don’t necessarily need an attorney to create your contract. Alli even has some contract templates on her site that you can download and edit to suit your needs.
Engage an Attorney
Once your business is earning a significant amount of revenue or you’re working with a lot of vendors and contracts, it’s a good idea to have an attorney on retainer. But even when you’re just getting started, Alli recommends having legal counsel that you can turn to when issues come up.
Build a Personal Brand
Okay, so this one might not exactly fall within the legal realm but having worked with entrepreneurs for more than a decade, Alli knows what it takes for a business to succeed. “I always like to say “law is my profession, entrepreneurship is my passion,” Alli writes in her blog. “This helps people learn more about me and my mission and get a feeling of the person behind the business. Having a well-established brand helps you stand out among your peers and colleagues, which is important to further establish authority in your field.”
If you’d like to work with us on building your personal brand, I’d love to hear from you!
