5 Quick and Surprising Legal Tips About Starting a Business

Oct 17, 2016 | BUSINESS | 0 comments


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There are so many legal tips out there on what you should do when you start a business. It is easy to get lost in all of that advice and miss some important details. We are here to provide you with some quick and surprising legal tips that will help you ensure that your business is fully protected.


1. You must follow corporate formalities.

A legal entity is not enough to protect your personal assets; you must also follow corporate formalities. Almost everyone has heard that they should start an LLC or a Corporation. However, how do you ensure that this legal entity holds up to the scrutiny of the court? You must follow corporate formalities. Corporate formalities include holding annual meetings, special meetings, and taking minutes at each of these meetings, keeping good records, holding planning sessions and making sure that everything that you do is in the best interest of the legal entity.


2. You should have an employee handbook and apply the rules to everyone.

To avoid discrimination claims by your employees, you should have an employee handbook and apply the rules to everyone. Discrimination claims spring up when one employee is treated differently than your other employees. That is why having an employee handbook, which specifies the rules and regulations of your company is so important.An employee handbook ensures that your employees know the rules and how they will be treated if they break them. However, having the rules on a piece of paper is not enough, you must also apply these rules consistently. This does not mean that you should be as happy with your slacker employee as you are with your top producer. It means that if both of these individuals commit the same offense, such as stealing pens, they should both be penalized in the same way.


3. You must have a privacy policy.

If you have a website and collect personal information, you must have a privacy policy. According to California law, if you collect personal information on your website (such as names or addresses) and you do not have a privacy policy, you can get fined $2,500.00 every time someone from California visits or uses your website. Also, with recent privacy concerns, your customers will appreciate you providing them with the information on what information you collect and how you use it.



4. You must report new employees.

If you hire new employees, you must report them to your state. All employers are required to comply with new hire reporting to their respective states. New hire reporting is used mostly to collect child support payments. You can usually find these reporting forms on your Secretary of State’s website or office.


5. You must have an unsubscribe button on newsletter emails.

If you send newsletters or other emails to people on your list, you must have an unsubscribe button in the email. Once a user unsubscribes, you are required to actually unsubscribe them from your email list.


While the above tips are fairly simple, you can do them quickly and they will go very far in protecting your business and saving you money on lawsuits. If you have any questions or would like to learn more about this topic, please let us know!


Donata Kalnenaite, Esq.
Agency Attorneys


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