Hi Reader! Most creative business owners eventually reach a point where the legal side of things feels too big to handle alone. It happens all the time to my 1:1 clients and recently happened to one of you when a trademark copycat forced you to rethink going at it without the support of an expert. Doing this research before you need it might seem pointless, but doing it now will save you stress when you are already in a heightened emotional state. This week, your task is to spend 15 minutes…

Hi Reader! Every business should have a central legal file where its important legal documents are stored. This might seem like a hassle, unnecessary, or even pointless. However, having a centralized file of legal paperwork can save you time and effort when you’re asked for important documents like your sales tax certificate, EIN number, or W-9. Why should you take the time to do this dreary and mundane administrative task? Because keeping accurate and up-to-date legal records will: help you…

Hi Reader! You probably know I’m a big fan of keeping your personal and business finances separate. I’m a big believer of this because: It makes tax time so much easier, because you automatically know if an expense is potentially tax deductible or not. It gives you a firm grasp of whether your business is making enough money to sustain itself. It helps you start thinking of your business as something other than yourself (which is VERY important on the legal side) And these days with dozens of…

Hi Reader! We all want happy working relationships. None of us enter relationships wanting to disappoint the other side or to not deliver what they want. But that’s the risk we run when we don’t use a contract. When we don’t use a contract, we run the risk of unintentionally disappointing the other side. And that’s because you run the risk of the vision you have in your head not matching up with the vision they had in their head. Rather than thinking of a contract as a bad thing that lords…

Hi Reader! An EIN is a little bit misnamed because it’s called an employer identification number. But, you don’t have to have employees to get one. Instead, it functions as your business’s Social Security Number. You can use it on W-9s, you’ll be able to provide it to PayPal and Stripe, and you can give it to your bank. You’ll use it instead of your Social Security Number. It adds a layer of protection to your Social Security Number. Because you’ll be giving your EIN instead of your Social…

Hi Reader! Pretty much every business is required to have at least one permit or license from their City or County. It doesn’t matter if your business is online-only. It doesn’t matter if clients or customers never visit your home. It’s required just for the privilege of owning a business. Why do you need one? Because your city or county says you still have a place where you are running your business. They say you are in a physical location when you are running your business. If you are…

Hi Reader! There are four legal business types: sole proprietorship partnership LLC corporation The first two, sole proprietorship and partnership, you automatically become as soon as you start offering your services or selling your products. The only distinction between the two is if you are doing it by yourself or with one or more friends. If you are going at it alone, you are a sole proprietorship. If you are doing it with friends, a partnership. As Michael Scott learned, you can’t just…

Hi Reader! Many creative business owners start their businesses without even realizing it. They have a creative outlet, an opportunity to collaborate, or a personal project. And it ends up turning into a business. Sadly, while this organic process is great for testing the waters, it can lead to some major headaches from the legal side. This is why a couple of times a year, I have to tell a client she has to re-brand her business. If you name your business something too close to someone else’s…