Legal Foundations for Your Business Success
Written by Courtney Bowie, Her Lawyer
As business owners, we’re often focused on delivering exceptional service to our clients, but it’s just as important to ensure that the foundations of our own businesses are solid. Having worked with many service-based businesses, I’ve seen how seemingly small legal oversights can lead to significant challenges. Let’s explore some essential legal tools that can help protect your business and set you up for sustainable growth.
1. A Strong Service Agreement
Your service agreement is more than just a formality—it’s your roadmap for a smooth client relationship. It sets clear expectations, outlines payment terms and manages scope creep. Without one, misunderstandings can arise, leading to unpaid invoices or disputes. And without key protections like limitations and exclusions of liability, those disputes can pose a huge risk to you and your business. A robust agreement protects you and ensures your clients know exactly what to expect from your services.
2. A Privacy Policy That Works for You
Privacy compliance isn’t just for big corporations. If you collect client information—whether for email marketing, scheduling, or consultations—you may be legally required to protect it. Even if not, a well considered privacy policy gives your clients and visitors to your business and website comfort that privacy and data security are important to you. With cyber theft a bigger risk than ever before, you can’t afford to put your head in the sand about how you collect, use and protect your clients’ data. A tailored privacy policy not only meets your obligations but builds trust with your clients by demonstrating you take their privacy seriously.
3. A Shareholders Agreement for Your Business Partners
If you’re in business with one or more partners in a company, a handshake won’t suffice. A well-drafted shareholders agreement addresses critical issues like decision-making, profit sharing and exit strategies. It’s much easier to resolve disagreements when the rules are clear from the start than to negotiate in the midst of a dispute. We can help guide you and your co-owners through the process of agreeing up front how you’ll run your company and what to do if things don’t go quite to plan.
4. Written Contracts with Contractors
Hiring contractors can be a smart way to scale your business, but without a clear agreement, you may face issues around intellectual property ownership, payment terms or confidentiality breaches. You also need to be clear about whether a new team member is in fact an independent contractor to your business, or an employee. There are important ramifications here for you around tax, superannuation and employee entitlements, so it’s not something you want to get wrong. A written contract protects both parties and clarifies responsibilities to keep the relationship on track.
5. Website Terms and Conditions (the Right Way)
Copying terms and conditions from a competitor might seem like a shortcut, but it’s one that could backfire. Not only could it breach copyright laws, but it also may not reflect your unique business practices or comply with legal requirements. Properly drafted terms protect you against liability and outline how visitors can engage with your site and its content.
6. The Right Structure for Your Business
Choosing the right structure—whether as a sole trader, partnership, company or trust (or a combination)—is fundamental to your business’ long-term success. It impacts everything from tax obligations and personal asset protection to your ability to expand or bring on investors in the future.
Working with a lawyer and an accountant together ensures your business is set up to thrive from multiple perspectives. While your accountant helps you navigate tax minimisation and compliance, your lawyer can advise on legal protections, regulatory obligations, and governance structures. This collaboration can help you build a foundation that protects your personal and professional interests and allows your business to grow with confidence.
Your Next Steps
Think of these documents and decisions as the legal scaffolding that holds up your business. If you’re missing any of these, or if it’s been years since they were last reviewed, now’s the time to take action.
If you’d like help identifying the gaps in your legal framework or ensuring your business documents are fit for purpose, feel free to reach out. I’m always happy to collaborate with forward-thinking professionals who value the peace of mind that comes from knowing their business is legally protected.
Author Courtney Bowie is the Principal Lawyer at Her Lawyer, a trusted partner of Accounting Heart.
If you would like specific advice tailored to your business and circumstances, Accounting Heart offers affordable service packages where you can work with our team one-on-one to help you get your business where you want it to be. Book your FREE Discovery Call to find out more.
Disclaimer: This is general information only and is not advice of any sort. No warranty or representation is provided by Accounting Heart Pty Ltd as to the accuracy, currency or completeness of the information contained in this blog. Readers of this blog should not act or refrain from acting in reliance upon any information contained herein and must always obtain appropriate taxation and / or other advice as may be appropriate having regard to their particular circumstances.