5 Things Every First Time Business Owner Gets Wrong

Starting a business is exciting but it’s also a legal minefield if you don’t know what to watch for. Most first-time founders don’t realize the costly risks they’re stepping into until it’s too late. Here are five mistakes I see over and over again:

1. Choosing the wrong business structure.
Sole proprietorships may seem easy, but they leave your personal assets exposed. LLCs offer protection, but only if set up and maintained properly.

2. Operating without an agreement.
You might trust your co-founder now, but wait until money’s involved. Without a written agreement, you’re one disagreement away from disaster.

3. Ignoring intellectual property.
If your brand name, logo, or content isn't protected, someone else can grab it and it happens more than you think.

4. Mixing business and personal finances.
Using one bank account for everything can destroy your liability protection and confuse your taxes. Keep it separate.

5. No clear contracts.
Handshake deals don’t hold up. You need agreements for clients, vendors, and collaborations even if it feels “too formal.”

The Fix?
Get proactive. Legal doesn’t have to be intimidating or expensive. A few smart decisions up front can save you years of headaches (and thousands in cleanup costs).

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