Cohabitation Agreements

5 Legal Considerations You Should Keep In Mind When Starting A Business

Starting a new business is a big step in anyone’s life. For most people, it involves significant financial outlay, huge time commitments and, when it’s not done right, a lot of stress. Thankfully, there are some things that you can do to streamline the process and make things easier on yourself.

For one, you can speak to a commercial lawyer to make sure that you’re taking into account your legal obligations. These vary according to the type of business you’re building and how you’re planning on running it. But, I’ve outlined a few important things that you should keep in mind in this article. They include:

  1. Your business structure

It’s very important to think carefully about what sort of business you want to run and how you want to structure it. Different business structures come with different tax structures, liability levels, and ongoing control. Common business structures in Australia include:

  • Sole trader, where you’re personally liable for your business and its income is reported as part of your tax return.
  • Partnership, which is similar to a sole trader, but which involves the profits and losses of the business being shared between two or more people.
  • Trust, which involves a third party being in control of the business.
  • Company, which is a separate legal entity and which declares its own income for taxation purposes.
Partnership Agreement

Potential Legal Implications with Partnership Agreements?

Water-Tight Contracts can help protect you from Unexpected Litigation

Written agreements are crucial to the success and future of every type of business. Regardless of whether it’s a local business or a large international corporation, legal business contracts can help enforce court action. Commercial lawyers like Rowe Bristol are trained to help a broad spectrum of clients with formulation of tracts, negotiation and protection from litigation. Seeking legal advice can help ensure that the commercial agreement covers every potential situation and challenge. Whether it’s a one-page agreement or a complex contract involving several pages, corporate lawyers can help formulate agreements that are clear-cut, purposeful and comprehensive.

Commercial lawyers offer a wide range of services that involve protecting their clients from exposure to risk. Some common services offered include:

  • Offering professional guidance with regard to business agreements covering agency, franchise , distribution, hire purchase or lease, vendor-business agreements and purchase/sale of goods and services and so on
Starting A Business

Starting a Business? Protect Yourself!

So, you’ve decided to start your own business, congratulations!  You’re on your way to a fantastic experience as you build a successful enterprise.  Here are a few key tips, documents, and warnings from commercial lawyers and someone who started their own $10 million dollar software company.

  • Protect Yourself. Business is a risky proposition, and starting your own enterprise can put you at tremendous financial risk.  Fortunately, the law provides a way to protect your hard work and safeguard your personal assets, should anything go dramatically wrong in your business.  The entity I’m describing is a corporation, or limited liability company.  Both of these constructs allow you to run a business but shield yourself from liability.  It’s important to do several key things:
  • Corporate ‘formalities’: You can’t start a corporation and then pretend it doesn’t exist, you have to run your business and maintain what commercial lawyers call “corporate formalities” – meaning you have to hold regular managers or shareholder’s meetings, and in all ways act as if it’s the company doing business, not you.
Shareholder Agreements

Why Are Shareholder Agreements Important?

Shareholder agreements are a vital part of a company’s structure. They outline the agreement between the shareholders – the people who invest their money in a company – and the company directors – the people who decide how to spend this money.

While shareholder agreements can be complex and somewhat difficult to set up, it is important to realise that they are extremely important. They need to be drafted with the help of high-quality commercial lawyers to make sure that they are error free and that they encompass the necessary information, and they need to be treated like the important legal document that they are.

Some of the main reasons why shareholder agreements are important include:

  1. They minimise the potential for shareholder disputes

Shareholder disputes can be costly, drawn out processes which can reduce the productivity of a company. They often require the assistance of a team of commercial lawyers to achieve resolution, and this can take a long time.

Shareholder agreements reduce the chance of shareholder disputes happening. They outline everything that the shareholder needs to know, and they provide a framework for the company to follow. While they won’t eliminate the risk of a dispute, shareholder agreements can greatly reduce it.