Running and managing a profitable startup takes quite an effort. It requires you to go beyond putting up a business to tackle the challenges that affect the venture. One of the biggest challenges comes from the legal side of the business. Yes, you ought to understand the legal issues affecting your business to protect your startup. Let’s look at the legal issues you should keep an eye on as a startup owner.

Common legal issues affecting Startups

Employee disputes

Your employees form the backbone of the startup. They contribute their knowledge and skills and also spend their time working towards realizing the vision of the company. However, they can turn into a legal liability if your terms of agreement and engagement are not clearly stated from the beginning.

You should consider having an internal code of conduct that will govern the workers. Besides, ensure the terms of engagement are laid bare in the employment contract.

Workplace health and safety issues

You must provide a safe working environment for your workers. You shouldn’t violate their health or safety. Now, you can do this by clearly displaying a health and safety law poster for employees to see and ensuring that laws governing the health and well-being of your workers are in place and well implemented.

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In fact, any employee in your startup has a right to compensation in case of a personal injury that happens in the workplace or on duty. According to, a personal injury firm that represents affected employees in San Diego, any type of business is supposed to protect employees at work. This just an indication of how vigilant you have to be in terms of workplace health and safety to avoid losing your employees, cash, and your brand.

Shareholder agreements issues

The shareholder agreement outlines the rights and responsibilities of each shareholder in the business. It details how the startup is going to run and who will be responsible for making important decisions. It also determines the avenue to be followed by any stakeholder who may want to leave. In this regard, you ought to ensure that if issues arise amongst the shareholders, then there are proper procedures for handling disputes.

Intellectual property and trade agreements

Whether your startup is dealing with health products or educational materials, it has a unique corporate identity. From its logo, and slogan, to the colors and patterns, to the names you give your products, etc. These identity markers form part of intellectual property (IP) elements that you ought to protect. You can patent the intellectual property elements to protect your business IP assets from anyone who wishes to reuse them, distribute or claim them as their own.  In other words, you should ensure you have the right IP strategy in your startup to avoid legal battles and losing business.

Terms and conditions of doing business

Carrying out such activities as procuring, hiring, or business contracting requires that you write down the terms of engagement between the startup owners and the other business players. The conditions should be outlined, based on who they apply to and who they govern. You can enlist the assistance of a qualified business attorney in drafting clear work terms and conditions to govern your startup.

Final word

Running a successful startup can be rewarding if you get all facets of business right. Remember, you can be forced to pay for your liabilities in case you get into legal issues. So, ensure you know the laws that affect your business and tighten every loophole that can bring down your startup.

Posted by Steven

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