4 Steps to Figuring Out if You’ve Got a Legally Protected Business

Birds eye view of a stack of books and a cup of black coffee on top. The books and coffee are on a white comforter on a bed.

Whether you’re just starting out, or you’re up-leveling your business, you know how confusing it can be to figure out whether you’ve actually done what you needed to do to create a legally protected business.

It’s hard to find a master checklist out there that lets you be like, “ahhhh…. All done!”

Starting your own business is honestly like a scavenger hunt.

You find out you need 1 thing…. and so you go get that 1 thing.

But then you find out you’re not done like you thought you were, and there’s some other thing you need to do.

And the cycle goes on and on and on….

Until now, there was never really a great resource (or master checklist) for you (online, service-based entrepreneurs) that would help you know exactly what you needed to have a fully formed and legally protected biz.

I’ve created something for you to do just that — but I’ll get to that in a second ;  )

First, here are 4 questions to ask yourself if you’re not sure whether you’ve got a legally protected business or not:

1 // Do you really have a business (yet)?

As amazing as it is to have a website, or even have some clients off of Instagram, you don’t *really* have a fully formed, or legally protected, business until you’ve registered your business in the state where you live/work.

A lot of the myths out there about waiting until you have X number of clients of $X dollars in your account are just that — myths.

The truth is, you can register your business before your website goes live or before you ever work with a single client.

To register your business, you first have to pick an “entity type”. Entities are like house structures: they define the shape and limits of your business.

Some common entity types are: LLCs, sole proprietorship, partnership, and corporations.

Each has its +/- and can be a good or bad fit for you depending on a number of factors:

  • what type of business you have
  • your financial status / situation (married, other income, etc.)
  • how much money your business will generate
  • where you live / work

2 // Do you keep it separated?

Maybe you registered as a sole proprietor to get started, or even went and got yourself protected with an LLC, but do you use a separate business bank account for your biz?

It’s essential to have separate accounts and treat your business like a business — clearly drawing a line in the sand between personal and business.

You should be able to find a free business checking account at a bank in your area. Shop around to find one with no fees, no minimum, and no weird rules.

3 // Do you use contracts?

If you’re still operating on handshake agreements (or email handshakes, as I call them!) then you’re not doing what you need to do to protect both yourself and your business. The key ingredient you’re missing? A contract (the contract you need for 1-on-1 services or coaching, a group program, or an online course).

Even if you have an LLC — that’s not enough. You want to have clear, written proof that you’ve told your client who you are, what you do, what you’re going to provide, and who the contract is between.

4 // Do you know what you need to do if something goes wrong?

OK – so maybe you pieced together a few contracts, slapped up some website policies, and you *think* you’ve registered your biz correctly — but do you know what to do if something happens?

If someone doesn’t pay you – then what? What will you do?

If someone takes your content you worked so hard on – how will you respond?

And heaven forbid someone sues you – do you know what needs to be in place to protect you? Do you know what role business insurance, contracts, and your entity registration play?

These are *such* important questions to ask yourself if you’re not sure that you have a legally protected biz yet.

And until now, there was never an easy, affordable way to learn all of this stuff.

You would spend 10’s of thousands of $$ if you went to a lawyer to learn this. And plus, they probably wouldn’t even understand what you do online ; )

That’s why I created my Ultimate Bundle® program, which gives you 10 DIY legal templates (like all those contracts and website policies you need) AND over 25 video trainings — so you’ll learn how to protect your content, get paid, and register your business the legally protected way.

Learn more about the Ultimate Bundle® program HERE.

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