Tips to Legal Proof Your Business

Many business often overlook the importance of legal proofing their commercial venture but when you start a business, it’s important to understand what laws and registrations apply. Thinking ahead for how you can best protect yourself will pay off in the long run.

Expert advisors can assist you every step of the way including a commercial lawyer, accountant or business advisor/consultant.

Here are some of our general tips for what to consider to legal proof your business:

 

Tax Obligations

There are different tax obligations depending on your business structure and activities. Some registrations you may be required to do include:

  • Registering an ABN (Australian Business Number) or ACN (Australian Company Number)
  • Registering for GST (Goods and Services Tax)
  • Registering a TFN (Tax File Number) as an individual or company
  • Registering for PAYG (Pay as You Go withholding)

Head to the ATO’s website for more information here.

 

Business Structure

 

 

It’s important to make sure your business is set up properly for your specific needs. Generally speaking, there are four different types of business structure:

  1. Sole Trader
  2. Partnership
  3. Company
  4. Trust

What is best for your set up will depend on a number of factors. For example, a Company can offer more legal protection and less liability than a Sole Trader/Partnership. Seek advice from your accountant, business advisor or lawyer.

To read more about the different business structures available, check out our blog article on “The Four Most Common Business Structures” here.

 

Registrations

ip-lawyer-albury

 

It’s important to understand the relevant laws for your business and industry and make sure you adhere to them. This includes any licenses, registrations and permits. For example, a tradesperson who runs an electrical business (as an electrician) requires by law a valid electrician’s license in order to operate.

Optional business registrations you can undertake include registering your business name, registering a trade mark (see below for further reading on IP) and registering a website domain.

 

Intellectual Property

 

Intellectual property rights can impact significantly on the value of a business as well as offer legal protection in the event of disputes or someone breaching your IP. A robust IP strategy can be created with the help of an IP Lawyer.

Check out our blog article on Why Your Business Needs an IP Strategy here.

 

Employment Contracts

 

Employment contracts – ensure these are legal and drafted correctly for your business. Employment Law can be complex with legislation undergoing regular changes.

Our blog has articles for further reading here:

The Difference Between Registered Agreements, Enterprise Agreements, Awards & Employment Contracts

And The Fair Work website is a fantastic resource which you can read through here.

Note: Ensure any business contracts/agreements you require to operate your business are drafted to protect you legally. This can include Terms and Conditions and a Privacy Policy. Peruse our contract store here (or click the image below) for some fantastic contract template options that are budget friendly.

 

 

 

Further Reading:

Business.Gov.Au have a handy resource page titled ‘Legal Essentials for Business.’

Head to their website here for more information on the following:

  • Business registrations
  • Fair trading
  • Contracts
  • Privacy laws
  • Employment laws
  • Anti-bullying laws
  • Unfair dismissal
  • Contractors
  • Franchising Code of Conduct
  • Intellectual property
  • Importing and exporting
  • Environmental protections
  • Marketing compliance
  • Terms and conditions

 

How Can We Help?

At Litton Legal, we’re experts in Dispute Resolution, Commercial Law and Intellectual Property. More than anything we understand the ins and outs of running a business and the best ways to legal proof your operations.

Contact our friendly team by heading to our contact page here.