Part II in the ‘Does The Law Matter?’ The New Hire
Although employment law can appear complex and overwhelming for any startup or business which decides to take on employees, you can avoid pitfalls and prevent problems from arising by getting a few key areas right from the start.
Ready to hire? Read up on these 11 things to think about before you take on your first employee.
A Nugget of Historical Context
Choose the right form of business
- Learn the various business structures and how to make the right choice.
- When starting a new business, one of the first decisions to make is the type of business organisation that will be used in operating the business.
Shareholders’ agreement: necessity, not luxury
- Starting a business with close friends or family members may seem to negate the need for formal arrangements.
- A Shareholders’ Agreement (or a Partnership Agreement in the case of a business organisation set up as a partnership) is a legal contract between all the shareholders.
Protect your intellectual property
- Protect your brand name
- Don’t discuss your idea carelessly
- Be sure you own your intellectual property
- Arrangements with third parties
The New Hire:obligations and liabilities
- Unfortunately, many startups or small businesses overlook these and unnecessarily
- expose themselves to potential liabilities and penalties. These liabilities may even
- affect the valuation of the company in a sale or financing transaction.
Other agreements you may need in the course of your business
- Documents play an essential role in protecting the interests of the business and the business owners over the course of a company’s lifetime.