10 Common Legal Mistakes Startups Make (And How to Avoid Them)
Avoiding legal pitfalls is crucial for startup success. Here are the top 10 mistakes we see startups make:
- Choosing the wrong business structure
- Not protecting intellectual property early
- Ignoring employment law compliance
- Failing to secure proper contracts
- Overlooking data privacy regulations
- Not having founder agreements
- Inadequate insurance coverage
- Poor record keeping practices
- Neglecting regulatory compliance
- Waiting too long to seek legal counsel
Each of these mistakes can be costly and time-consuming to fix later. Getting proper legal guidance from the start saves money and prevents headaches down the road.