Common Legal Mistakes Entrepreneurs Make, by Adam Kidan

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Transcript of Common Legal Mistakes Entrepreneurs Make, by Adam Kidan

Page 1: Common Legal Mistakes Entrepreneurs Make, by Adam Kidan
Page 2: Common Legal Mistakes Entrepreneurs Make, by Adam Kidan

Not vetting

the name

• Conduct a thorough trademark search to see if you can use your name!

• If your name ends up infringing on another trademark, then you need to change the name, lose your Google ranking and rebuild your website

Page 3: Common Legal Mistakes Entrepreneurs Make, by Adam Kidan

Not separating business and personal finance

• It’s extremely difficult to make smart business decisions without clear financial data!

• Commingling funds means you’ll lose the liability protection from your business!

• Set up accounts solely for business income and expenses

Page 4: Common Legal Mistakes Entrepreneurs Make, by Adam Kidan

Not keeping records

• “Piercing the corporate veil” is when courts discover that a business entity and its owner are one in the same!

• It means that business creditors can come after your personal assets!

• Avoid the by recording everything that happens with your business on a year-by-year basis, and submit your corporate filings with the state

Page 5: Common Legal Mistakes Entrepreneurs Make, by Adam Kidan

Not making contracts

• Business without a contract is a surefire way to get yourself sued or screwed out of money!

• Have proper contracts in place that outline everything

Page 6: Common Legal Mistakes Entrepreneurs Make, by Adam Kidan

Not using legal notices

• If you collect information from people visiting your website, then you need a privacy policy!

• Have disclaimers and terms and conditions outlined on your website, especially if you’re selling products or services

Page 7: Common Legal Mistakes Entrepreneurs Make, by Adam Kidan

Not protecting your intellectual

property• The longer you’re in business, the more

intellectual property you produce, and the more valuable it becomes!

• Register your intellectual property with the US Patent and Trademark Office and the US Copyright Office

Page 8: Common Legal Mistakes Entrepreneurs Make, by Adam Kidan

Not classifying your team as “employees”

• The IRS has a very strong bias towards “employees” rather than “contractors!

• Do a proper analysis to figure out if your workers are employees or independent contractors