The Legal Pocketbook

Once you have your legal foundations together, here are the basics you should be aware of while you grow and maintain your business. This is a supplement to our legal services so that you know what to be mindful of and when to contact us, and we are of course here to help with everything as you go.

1. USE THE FORMS WE GAVE YOU

When you are engaging with your clients, customers, workers, partners, and other business affiliates, make sure you are actually using the contract forms we prepared for you. For details on each form and how to use them, check out our Contracts Guide.

 

2. WHEN YOU RECEIVE A CONTRACT…

If a company asks you to sign their contract, then we should review that first to ensure you are protected going into the deal. For example, if you are providing services to a big company, they may ask you to sign their in-house contractor agreement, and those are typically stacked in the favor of the company hiring you, potentially to your detriment. We can always ask that the company sign your services agreement instead, and if they insist on using their agreement, then we can review it together first. We’ll advise on its terms to ensure it aligns with your intent, and we can typically negotiate adjustments to the agreement to better protect your interests.

3. WHEN YOU CHANGE OR EXPAND YOUR BUSINESS…

If your business activities change or expand, let us know so we can confirm what new contracts you may need. For example, if you are collaborating with another brand, hosting an event, hiring a new kind of worker, or adding new types of products or services to your business, then we should connect on that to see what type of contract may be needed.

 

4. ALWAYS USE YOUR COMPANY IN CONTRACTS

If you have an LLC or corporation, you need to fully identify it in your contracts to avoid being personally liable on the contract. We’ll make sure your LLC or corporation is clearly identified in any contract we prepare or review for you, but just in case you find yourself signing an agreement without our help, make sure your entity is fully listed, like “Your Company Name LLC, a California limited liability company”, or “Your Company Name Inc., a New York corporation". What we see happen all the time is businesses just put their company name or brand name in the contract without the LLC or Inc., which may not be enough to confirm that you are doing business an LLC or corporation, which could leave you personally liable on the contract.  

I. Navigate your Contracts

II. Navigate and Upkeep your Intellectual Property

Don’t Get in Trouble for Infringement

1. DON’T USE OTHER PEOPLE’S CONTENT

  • Don’t use photos, videos, text, brand names, or other content that you didn’t make without the owner’s permission. For example, don’t include photos on your website or social media that you didn’t take unless you have consent from the owner. Using content you don’t own without consent can expose you to potential liability for copyright / trademark infringement.

  • “Fair use” exceptions rarely apply to any uses related to your business,(at least not in a legally safe way), though we can always connect to discuss your planned usage.

  • And there are shark lawyers out there scouring the internet looking for any unauthorized uses of their clients’ content, and they can shake you down for thousands of dollars if they catch you using unauthorized content. You can always check with us if you are unsure.

 

2. GET CONSENT WHEN FEATURING OTHER PEOPLE

Also, you generally shouldn’t use photos or videos that feature other people without their consent, even if you made the content. For example, if you record content at an event, or are recording talent for media content, and want to use that content for marketing purposes, then you should generally have everyone who is featured in the content sign a consent form confirming your rights to use the content for those purposes. Otherwise, you may be infringing on their publicity rights and could end up liable for damages. We are happy to help prepare the appropriate consent forms as needed.

 

Protect your Trademarks

1. ENFORCE YOUR TRADEMARK RIGHTS

  • When you own a trademark (like a brand name, product name, logo or slogan), that means you have exclusive rights to that trademark in connection with your offerings and can stop others from using a similar trademark in connection with similar offerings. So, if you see a similar trademark being used in connection with similar offerings, then you may have rights to stop them.

  • Note that if you don’t take measures to stop or limit infringing uses, you could eventually lose exclusive rights to the trademark by waiving your enforcement rights. So, if you think another brand is infringing on your trademark, let us know so we can assess the situation and take appropriate steps.

  • We don’t recommend contacting the infringer until we have connected on the matter as we’ll want to confirm the scope of your rights and the best next steps before engaging with them.

 

2. TRADEMARK EXPANSIONS

If you start using your trademark in connection with new offerings or in new international places, then we should connect on potentially expanding your trademark rights. For example, if we filed your trademark in connection with educational content, and now you are also offering apparel, then we can look into expanding your trademark rights to apply to that new line of offerings. Or, if you need to secure your rights to the trademark in another country, then we can look into expanding your trademarks into that location.

 

3. PROTECT NEW BRAND NAMES

If you have any new unique brand names, product names, slogans, or other trademarks, we should connect to make sure it’s not infringing on an existing trademark before you use it, and we can look into protecting it as needed.

 

4. TRADEMARK RENEWALS

If you have a trademark registration, renewals are due every 5-6 years after registration. You need to prove that you are still using the trademark in order to renew. If you filed your trademark with us, we have it in our docket and will let you know of any renewals that may be due.

5. AVOID OVERLY BROAD LICENSING

If you are licensing your brand name to another party, you need to maintain oversight and quality control over their usage or you can lose rights to your brand name. Check with us before signing any licensing deals.

6. AVOID SCAMS

You may get mail designed to look like an official government notice asking you to pay money for random trademark filings that you do not need. These may come from the “WTMR” or other scam organizations trying to trick you into paying money for unnecessary filings. You generally do not owe any additional money to maintain your trademark aside from renewals or other maintenance filings that we coordinate with you.

 

Protect your Copyrights

1. NEW CREATIVE CONTENT

If you create any new original creative content that you want to protect from infringement, we should connect on that and consider registering a copyright for the content. For example, if you write a book or make an e-course, then we may want to consider registering a copyright for it. Although you generally own the common law copyright to the content just by making it, you will be in a much better position to enforce your rights with a registration. For example, with a registration you are by default entitled to $750 - $150,000 in damages per infringement, whereas without a registration you have to prove your losses, which can be challenging or limited. Also, you can’t sue for copyright infringement until you have a registration, which can slow down your enforcement.

2. COPYRIGHT UPDATES & RENEWALS

If you update any of your copyrighted creative content, like publish a new edition of your book or make a new version of your e-course, then we can consider filing a new copyright application to protect the updated content. Otherwise, you generally do not need to renew your copyright registrations.

 

PROTECT YOUR TRADE SECRETS

If you have private valuable content, like a secret recipe, e-mail list, supplier contacts, or other confidential information you don’t want used or shared by others, then you should protect that information as a trade secret. To do that, you should (1) keep the information secured in a private place, (2) do not make it public, and (3) if you need to share the information with someone, like an employee or contractor, do so on a “need-to-know” basis only, and make sure the recipient has signed an agreement that bounds them to confidentiality in connection with the content. We can help make sure you have the right confidentiality agreements whenever you need to share private information.

III. Upkeep Your Business

Whether you are a sole proprietor, LLC, or corporation, below are a few things you should be mindful of to properly upkeep and maintain your business.

1. ANNUAL REPORT

If you have an LLC or corporation, you may have an annual report due with the secretary of state every year or two. This just confirms the current owners and address of your business.

2. BUSINESS LICENSE

If you have a business license with your city, then you typically need to file a renewal each year, which may include reporting your income and paying any taxes due. Often this is due promptly in the new year.

3. TAXES

Be sure to connect with your accountant to pay your city, state, and federal taxes. Some deadlines may be different than when you normally file your personal tax returns. You can also check with your accountant to see if they recommend you make an S-Corp election to help optimize your taxes.

4. SELLER’S PERMIT

If you sell products and have a seller’s permit with the state, then you may need to pay your sales tax as it becomes due. Check with your accountant with help on this as needed.


5. DBAs

If you have a DBA, renewals are typically due every five years, but these may vary by location.

6. MEETING MINUTES

If you have a corporation, you typically need to keep documentation of a shareholder meeting each year. If you are the sole owner, this can just be you signing a document re-electing yourself as the director. These aren’t filed anywhere, you just keep them as part of your corporate records in case you ever need to prove that you were following corporate compliance formalities. These typically aren’t needed for an LLC.



7. SCAMS

You will get mail designed to look like an official government notice asking you to pay money for random things you do not need. These may include ads for labor law posters, certificates of good standing, or other ads trying to trick you into paying money unnecessarily.

8. BUSINESS CHANGES

If you ever change your business address or ownership, or want to give out equity to your team, contact us to coordinate amendments and updates as needed.