About this section
Starting your own business is an exciting time, however there several areas of the law that a founder should consider first to ensure you do things the right way.
Contract law is likely to be the first area a founder will come across. Contracts with suppliers and designers, service agreements, distribution agreements, software licenses, contracts for a lease of premises or equipment and contracts with tradespeople or new employees will be some of the first and most important documents that will be created. The success of a business will rely to a large extent on how well these contracts are drafted and negotiated.
In addition, knowing what type of legal business structure to use is always important. Choosing the wrong structure can cause many issues and a lot of expense for a founder when their business is growing. For example, creating a partnership when a company would have been more appropriate will mean a possibly complicated and messy dissolution before the company be created.
Other more discrete issues that must be considered are include such requirements as
- website terms and conditions; and
- internet use policy for the management of your employees online behaviour.
These issues are often neglected by founders, but can land a start up in hot water if not considered carefully, with documents drafted properly and with legal advice. Because of this it is important to be aware of the legal issues that can affect Start Ups. Get excited, but get prepared as well.