You should understand what your legal obligations are and how they relate to your business
activities. This will help you identify any risks associated with your business and ensure that
you’ve taken steps to mitigate them. It’s also good practice to check that policies and procedures
are fit for purpose and address any gaps in compliance where necessary.
The world of legal compliance is vast and can be confusing. There are a number of things that
you need to understand in order to ensure that your business is compliant with the law. Here
are some practical tips and advice to help you get started:
Understand your legal obligations and risks
A good place to start is by understanding your legal obligations and risks. This will help you to
identify potential areas of concern, as well as allowing you to make informed decisions about
how best to approach them.
Decide on your company structure
There are many different types of company structures, including sole traders, partnerships and
limited liability companies (LLCs). Each type of structure comes with its own set of legal
obligations and risks. For example, sole traders are personally liable for any debts or claims
made against them by third parties; whereas LLCs can limit the liabilities of their owners by
distributing profits among members.
When a business needs to protect its intellectual property or defend against a lawsuit, it’s often
the case that the company doesn’t have the resources to hire a lawyer. In this situation, practical
legal advice is critical.
“A lot of people don’t understand their legal obligations,” says David Ellis, co-worker of
trUElaw, an online legal services company. “If you’re running a small business, you might not
be able to afford a lawyer.”
Here are some tips for small businesses on how to get practical legal advice:
Understand your legal obligations and risks: Researching what you need can save you time and
money in the long run. For example, if you’re thinking about selling online, do your research
into taxes and regulations so you know what’s expected of you.
Know what type of contract is needed: What type of contract is needed will depend on the
nature of your business relationship with another party — whether it’s an employee or client or
supplier — but having an understanding of how contracts work is essential no matter who you’re
dealing with. For example, if someone wants to sell their product through your website but they
don’t have any language in place that protects them from intellectual property infringement
claims (or vice versa), then both parties could be
Understand your legal obligations and risks
