If you are unfamiliar with business laws, then you should certainly make an effort to learn quickly as your set up your startup. One of the worst things you can do is break the law by accident as this will set you back financially and ruin your reputation before you have even started.
Sometimes the law can be quite vague and it is is more difficult to negotiate if you aren’t familiar with it. In general, though there are a few rules you should follow to ensure that you stay on the right side of the law.
Consult a Lawyer
It might sound obvious, but you wouldn’t believe how many people just assume that things will be fine and carry on regardless of their suspicions. How daft are they?
Consulting a lawyer might cost you in consultancy fees, but you need to think about this as a sort of insurance. It’s much better to be paying up front while it is in your budget to find out what the best practices are than learning the hard way and having to scrape together enough to pay a fine.
Choose a law practice with a variety of different departments so that you can cash in on a large amount of varied experience. As a business, you could face all kinds of legal problems, so it is best to know what you need to be prepared for. A company like formerdistrictattorneys.com is great because they understand the law from both sides and will be able to help you through all kinds of difficulties.
If It’s Too Good to be True…
This is really a rule for life: if it’s too good to be true then it probably is and in the business world it is probably illegal too. Though everyone is looking for the best possible deal and we all want to cut costs, you need to be aware of the real value of things and be suspicious of how someone else might have cut a cost so drastically.
You also need to watch out for how the law affects the way you do business. Think carefully about how staff are paid and how they are treated. The last thing you need is an HR crisis to bring the whole company into disrepute. The cheapest way is not always the best way so be careful when you weight up the costs.
Get an Accountant!
One of the main ways that startups mess up is by failing to do their accounts properly. Unfortunately, poor accountancy can also be illegal and you might find that your money doesn’t add up because it is a cover-up. Or, it might be that you have failed to pay the right amount of tax. If you want to be sure that you are doing everything above board, you should certainly get an outsourced, impartial accountant to do your books.
You might also like to get in a second accountant each year, just to make sure that everything is as it seems. This might sound a bit over the top, but given how many financial scandals there are each year, you really do want to be 100% about your own business accounts.