How Start-Up Companies Can Avoid Common Legal Mistakes

mistakesIf you are establishing a start-up company, you have probably realized it is no easy undertaking. There are numerous tasks to handle, including securing funding and hiring employees. Below are a few common legal mistakes that start-ups make and ways you can avoid them:

Business Entity

There are a variety of legal structures for entrepreneurs to choose from, each type has its own pros and cons. It is imperative for you to consult a professional to determine which legal structure will be most beneficial for your venture.

Written contracts

Having your agreements in writing helps your new venture plan for the best and the worst. A written contract between the entity’s founders is essential. The agreement should outline the obligations of each founder, the percentage of ownership, and how daily business decisions will be made. It is the most effective way to prevent disputes and avoid disagreements.

Intellectual property

You should be proactive in protecting your intellectual property. This includes safeguarding your company name, key products and logos. Without having the proper trademark, patent and copyrights, you may not have the proper legal recourse if a competitor infringes on your rights. In order to ensure your intangible assets are protected, you should also have all employees sign a non-disclosure agreement.


There are numerous laws governing the employer-employee relationship. From employment contracts to tax forms, there is a lot of paperwork involved and it is essential that you understand the rules and regulations that apply to your company.

Get help

Many entrepreneurs try to save money by handling everything themselves, but taking this approach often ends up costing them more than hiring a professional. One mistake can be disastrous to the success of your start-up.

If you have questions about establishing a start-up company, let us help. Contact The Swenson Law Firm for the advice and guidance you need.



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