Five Legal Must-Do’s for Entrepreneurs
Hey Lovely!
Starting a business? Yes, Queen! Welcome to the wild and fabulous world of entrepreneurship. Whether you’re launching your dream boutique, creating the next big thing, or building an empire, let’s make sure your business is legally solid. Here are the Top Five Legal Must-Do’s to keep you covered and thriving!
1. Pick Your Power Structure. Your business structure is like the foundation of your empire—it affects your liability, taxes, and how much legal drama you’ll deal with. Here’s the lowdown:
Sole Proprietorship – Super easy to start but offers zero liability protection. If something goes wrong, your personal assets are on the line.
LLC (Limited Liability Company) – The go-to choice for small business owners. Protects your personal assets and keeps taxes flexible.
Corporation – Perfect for raising capital and scaling big, but comes with more rules and paperwork.
Choosing the right structure means securing your future. Protect yourself and your empire from the start.
2. Make It Official. You wouldn’t build a dream house without laying the foundation, right? Same with your business. Here’s what has to be done:
Properly form, organize, or incorporate your business.
Get an EIN (Employer Identification Number) for tax purposes—it’s like your business’s Social Security number.
Secure the right licenses and permits to stay compliant and avoid fines.
Be sure to get all your applicable business tax receipts.
Be sure to properly segregate business and personal assets.
Skipping this step? Not an option. You want a business, not a legal mess.💅
3. Protect Your Brand. Your brand is your business’s identity—so protect it.
Trademarks – Keep your business name, logo, and tagline legally yours.
Copyrights – Protect original content, courses, or designs from being copied.
Patents – If you’ve created something unique, get that patent before someone else does.
(I’m not a patent attorney but I know a lot of really cool attorneys who are - if a patent attorney is what you need I’ll point you in the right direction!)
Think of intellectual property protection as an investment in your business’s future. Take it seriously.
4. Contracts Are Essential. A solid contract is like a strong foundation—reliable and designed to protect you. Make sure you have:
Client & Vendor Agreements – Clearly outline expectations, payments, and obligations of each party. Include clauses that address what happens when things don’t go as planned and obligations are not met.
Employee & Contractor Contracts – Define roles, protect confidential information, and avoid misunderstandings.
Partnership Agreements – Because mixing business and friendships can work, but only with clear rules.
Although oral agreements are binding in Florida and Alabama oral agreements (or handshake agreements) are the things misunderstandings, disputes, and costly litigation are spawned from. Reducing business agreements to writing is not just a best-practice, it is a risk mitigation measure. Protect your business and your peace of mind.
5. Handle Your Business Finances. Making money is great, but managing it wisely is essential.
Be sure not to co-mingle personal and business finances. Maintain the corporate formalities!
Know what taxes apply to your business (income tax, sales tax, payroll tax, and more).
Keep organized records to make tax season easier and mitigate the risk of audits.
Pay on time to avoid penalties and unnecessary fees.
A great accountant is worth their weight in gold. I highly recommend consulting with an accountant or tax attorney. (I’m neither but I can point you in the right direction to secure the professional help needed!).
Final Word. Starting a business is your moment to shine—so do it right from the start. Taking care of these legal steps now saves you stress, headaches, and money down the road.
You have the vision, the drive, and the passion. Now, let’s go build that empire!
Got questions? Schedule a Chat with Tiffany!
xoxo, Tiffany