by Hoogie Espinosa . October 8th, 2022
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. And 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.
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.
A good way to save money is to get an accountant. Despite not being an attorney, these guys are trained to know laws concerning money and business and gracefully dance around 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.
An obvious but common legal mistake is not fixing a personalized service agreement or taking it lightly. Many people think it’s ok 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.
A common problem with a lot of people 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.
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.
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 huge rash of what-ifs. But an LLC might be the wrong choice if you need a constant flow of decent money from the get-go.