How to Set the Legal Framework for Your New Business

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Covering All the Bases: How to Set the Legal Framework for Your New Business
by Bryan Janeczko, entrepreneur.com
Aug 25, 2020

It's what ensures that your service or product is protected, that you're not operating illegally, and that you don't lose out if things change among your staff.

By nature, founders are big-picture people; we love envisioning new ways of doing things. The problem, though, is that sometimes we try to paint the bigger picture before we set up the mechanics of actually running a company. The legal side of setting up a business is often seen as a time-consuming chore, brushed under the carpet until it’s a screaming necessity. But to enable your business to run freely, this has to be prioritized before you even consider bringing on clients, hiring staff, or eventually pitching to investors.


The legal framework of a business is what ensures that your service or product is protected, that you're not operating illegally, and that you don't lose out if things change in your team. A prime example of not doing this right is the Winklevoss twins, who famously failed to legally document the early stages of their social media platform, allowing Mark Zuckerberg to launch Facebook using part of the code he had written for them.

Despite being easily avoided, legal challenges are one of the top reasons why startups fail. Founders who don't identify their legal needs from the start could end up realizing there's a fundamental problem with their business late in the journey.

To ensure you’re covered in the eyes of the law, take the following steps to set up your legal framework, as explained by the experts.

1. Define your intellectual property ASAP.
2. Draft a solid co-founder and equity agreement.
3. Know the legal obligations as you grow.
4. Do your due diligence before funding.

 

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Free On-Demand Webinar: How to Set the Legal Framework for Your Startup
Entrepreneur.com
Retrieved Aug 27, 2020

Setting up a new business and want to cover your bases legally? Watch our on-demand webinar with Jim Gatto, partner at Sheppard Mullin as he shares his experiences from 30+ years helping startups and technology companies trademark products, protect their intellectual property, and set up solid legal frameworks for their businesses.

Key takeaways:

• How to avoid common legal mistakes made by new business owners
• How to protect your intellectual property from a legal standpoint
• How to prepare your company legally before raising funding

Complete the registration form to watch now!

About the Speaker
Jim Gatto is a partner in the Intellectual Property Practice Group in the Sheppard Mullin Washington, D.C. office. Jim leverages his unique combination of nearly 30 years of IP experience, business insights and attention to technology trends to help companies develop IP and other legal strategies that are aligned with their business objectives. His practice focuses on all aspects of intellectual property, internet and technology law, including patent, trademark, copyright, trade secret and open source. Based on our best-selling book, Start Your Own Business, we have launched a new on-demand start-up course, providing you with a step-by-step guide to starting your own business. Whether you're ready or just thinking about it, get started for free.


Register here...