The business world has a ton of rules and loopholes for one to learn. Sadly, the number of these things your business has to pass through is so huge you’d need to be a specialist to memorize even a huge portion of them. We call on these specialists for their advice because we all know that a small ditch can reveal itself as a gaping abyss to the Earth’s core.
But while you don’t have to memorize the whole system yourself, here are a few tips you could remember to help you sail a bit smoother.
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1. Independent contractor’s agreement with non-disclosure clauses
When you have a business, you’ll have a lot of delicate information that could bring you down if in the wrong hands. Hidden projects, possible moves, etc. According to law firm California Employment Counsel, APC, giving an NDA to regular employees is quite normal. However, many people miss out on not giving NDAs to people they contract for specific projects. I find this much more dangerous because you probably haven’t developed a deep relationship with the contractee.
2. Accountants know things
A good way to save money is to get an accountant. Despite not being attorneys, these guys are trained to know laws concerning money and business and gracefully navigate them. They’re a lot cheaper, too. But of course, like with any other profession, there will be good and bad accountants. Know how to tell them apart.
3. Plan out your service agreement
An obvious but common legal mistake is not fixing a personalized service agreement or taking it lightly. Many people think it’s okay to copy-paste the document from a template, which can leave you defenseless in many areas. Specify the provisions, the payment, the return policy, and any disclaimers you might need to make.
Similarly, if your business handles official documentation, follow specific guidelines to avoid unnecessary setbacks. For instance, when submitting legal documents like green card applications, ensure that guidelines for your green card photograph are followed precisely to avoid rejections.
4. Go to a lawyer regularly
A common problem is that they go to lawyers when their world crumbles. Like a doctor, you should go to your lawyer for regular checkups. Problems are a lot easier and cheaper to solve when they don’t exist. It may seem like a big chunk of extra expense, but you’ll save a lot of money by doing so.
5. Interview several lawyers
Remember that when getting a lawyer, you are hiring one. And like any other person working for you, you want the best. Don’t go for one just because they were the first you met, they’re your friend, or even if it was a referral from a relative. Look at all your options and choose wisely.
6. It could be bad for you to open an LLC
Starting an LLC may have many tempting benefits, but it has one huge problem. You’ll be subject to self-employment tax. Depending on where you are now, you might not be able to afford this, especially with a startup. I’m not saying you shouldn’t start your company because that’d cause a massive rash of what-ifs. However, an LLC might be the wrong choice if you need a constant flow of decent money.