Episode 7. The First 3 Steps to Legally Protect Your Business (Where to Start!)

Listen Now:

Are you super overwhelmed with legal advice? Have you taken in way too much information and can’t figure out where to start? I will go over the three steps you need to take to protect and grow your online business if you haven’t done much yet. We keep it simple – just exactly what you need to know to get started. If you haven’t taken any action to protect yourself and your business legally, start here!

In this episode, you’ll hear… 

05:14 – The legally legit trifecta

09:13 – Forming your business

15:18 – Getting business insurance

21:30 – The importance of a proper contract

How to form your business

If you don’t take steps to form your business legally, you don’t legally have a business. In the United States, you form your business in the state you live. Every state has a different site, but if you Google “[state name] business registration” and click on the official state website, you should find what you need. From there, you have to choose what kind of business you want to be: sole proprietor, corporation, or LLC. There are pros and cons to each, but we would need a whole episode to explore them.

Protect yourself financially with business insurance

Forming your business will protect you personally, but business insurance is going to protect you financially. This protection is necessary because, even if you set your business up correctly and are not in danger of being on the hook for your business’s debts and liabilities, your business still is. Few companies can sustain a lawsuit and come out on the other side without the aid of insurance. Just make sure you understand what your deductible is so that you’re still financially fit afterward.

How a proper contract can keep you legally protected

No matter how you work with your customers, you need a contract that legally protects both parties involved. If you are coaching one-on-one or in a group setting, you’ll need to have contracts signed by everyone involved. If you are selling an evergreen product – for example, a course or something digital – then a “terms of use” that the customers opt into with a checkbox is enough. If you require e-signatures, you have to make sure that you are using an E-sign Act compliant platform. Your contract also has to be made available at or before the time of purchase. It isn’t legal to withhold a contract until after you receive payment.

These three tips are a great starting point for protecting your business. I recommend going deeper, but that’s going to take more time, and get a little more complicated – so make sure you have these basics in place before anything else, and then tune into the next episode of On Your Terms

Listen to On Your Terms on your favorite podcast platform

Listen to the show on your favorite podcast player and be sure to follow, and leave a review to help introduce the show to more online business owners just like you!

If you’re ready to legally protect and grow your online business today, save your seat in my free workshop so you can learn how to take the simple legal steps to protect the business you’ve worked so hard to build. Click here to watch the free workshop so you can get legally legit right now!

Connect with Sam:

DISCLAIMER: Although Sam is an attorney she doesn’t practice law and can’t give you legal advice. All episodes of On Your Terms are educational and informational only. The information discussed here isn’t legal advice and isn’t intended to be. The info you hear here isn’t a substitute for seeking legal advice from your own attorney.

On Your Terms is a production of Crate Media.

Join The Conversation

So What Do you think?

Share Your Thoughts

Your email address will not be published. Required fields are marked *

want to learn how to legally
protect your business?

Watch My
Free Legal Workshop to Learn How

Get Instant Access Now

You May also like