Business success depends on several things to thrive. Apart from successfully having a good customer base, a good business does well with proper legal setup. Knowing that you will not be on the wrong side of the law as you transact your business is a comforting feel. This article lists some of the common legal things every small business owner should figure out before investing heavily in their venture.
1. Separate your Business Identity form Yourself
Most business owners have made the mistake of registering their business in their name. This means that in case of any consequences, they will be forced to cater to it using their resources. Talk to any business lawyer Toronto and you will learn that your business borrowing and taxation details are dependent on how you structure it. To avoid putting your assets on the line, make sure your business is separated from your assets. This way, even when the lenders come calling, your property will be left untouched because it is not linked to the business in any way.
2. Keep Good Records
Record keeping is an art that every successful business owner learns early in the venture. Good records help you track your progress. It would help if you kept up with the business in term s of profits and losses. What’s more, proper documentation and record-keeping help you decide which measures to adopt whenever you are making your assessment. As the company grows and expands, you will be able to make wiser decisions on employment, management, wage bill systems, and other relevant roles in the business. A record gives you something to compare and contrast, helping you avoid making emotional decisions that may hurt your business.
3. Always Insist on Written Contracts
Written contracts are binding and serve as proof of agreement. Whether you are dealing with a vendor, employee, investor, or even partners, verbal contracts are not the best form of agreement to go for. As a growing business, you are likely to be sued in case problems set in. You need to cover all bases and take care of all loopholes in case of such eventualities. While written contracts are great, make sure they are clear and that each role is clearly stated. This way, anyone in violation of the contract will face the consequences without being taken advantage of. Make sure the contract expressly pint out how conflicts should be resolved in case they arise.
4. Protect the Company’s Intellectual Property
Any business lawyer will tell you that the business space is not for the faint-hearted. Imitations and theft of intellectual property is the order of the day. Make sure to protect your ideas, processes, technologies, and discoveries by registering them as a company trademark. This way, you can always have legal backing in case of a dispute.