I’M GOING TO SUE YOU!
Probably the 3 scariest words for a business owner- and the easiest to avoid with planning- but how often do we leave the most important things on the back burner until it’s too late?
So you’re obviously not getting sued today- but you could be! That’s why I’m sharing my top 4 tips (courtesy of WheelhouseLegal.com) to protect your business now- and a sweet bonus, straight from The Hubbin- just for you!
Now, if you’ve watched my recent scopes, or checked me out on Facebook- you know I’ve been chatting (pretty passionately) about the online sales world- and ‘what’s next’ in this space.
Sure, so many of us are focused on nailing our business idea, and building a cool online course- but my 1K1Day Academy graduates, and Yacht Club Elite mastermind members, know that it’s about doing it RIGHT. You’ve got to be ‘legal-ed up.”
Here’s the deal- right now, online business is like the Wild West- there’s a TON of money to make, no real restrictions on how to make it, and endless opportunities. But like any gold rush, eventually the people who aren’t paying taxes, offering crummy products that don’t help, and the downright scammers are going to ruin it for all of us changemakers.
The government- specifically the Federal Trade Commission- is gonna crack down sometime soon- and make sure they’re getting their financial “piece of the pie,” and answer all those ‘Better Business Bureau’ complaints about shady online practices. Of course, after working for a decade in corporate, I can tell you that when I say ‘act like a business’ is not just about sales, not doing free, and professionalism in networking.
It’s about taking 15 minutes and doing the paperwork to BECOME A BUSINESS.
1. FILE YOUR LLC: This is the status that separates your online business, from your personal business. It makes you ‘official.’ And most important, it protects clients from suing you personally for your home, car, and all your cash. When you do business as an LLC- they are only able to ‘come after’ your BUSINESS income. It doesn’t take long, you can do it yourself online or The Hubbin can guide you through.
2. GET YOUR MONEY RIGHT: Keep tabs on and file your income and taxes! Even better, hire a licensed pro make sure you’re doing this correctly. Taking sales money from the farmers market- and going out to buy a cute dress for your daughter is called ‘commingling funds’ (mixing business money with personal spending)- and it’s a fast way to get into hot water with (and an Audit!) from the IRS. Get a business bank account- and use it.
3. REAL BUSINESS ADDRESS: You are required BY LAW to have a real address on all of your email blasts. Up to date and current. If you send emails without an updated address (at the very bottom)- the FTC can fine you $16,000 AN EMAIL. The average sales funnel has 15 emails- that’s $240,000. Do you have that change lying around? Go get a PO box from your local post office or UPS store- today.
4. THE PAPERWORK: Vendor Agreements protect you when you work with a graphic designer, or hire a web developer. Mutual Non Disclosure Agreements keep your business coach from sharing (or stealing!) your strategy, and disclaimers protect you from being sued by students failing to do the work.
These are all things you needed to do yesterday- but some will take time to get started- and what you CAN do right now, is the paperwork.
Pick up The Official Legal Small Business StartUp Package Here:
Get Legaled Up, Richfriends!
-Nicole
All information provided here is to use at your own discretion. At no point is this to be considered a substitute or alternative for professional legal counsel. We are excited to help you get the professional boost you deserve, but use and results of any products, information, or tools is the sole responsibility of the buyer. Oh, and yes, this is a fancypants disclaimer- cause ‘legaled up!’ Haha!
Completely agree with all of these, especially #1 and #3. I find that many people mistakenly think it’s okay to do a sole proprietorship until they are making enough money to become an LLC. Also, if you are using your home address instead of a business / PO Box, you may have clients or prospects showing up at your front door! I shared with a colleague several years ago to get a PO Box for this very reason, and she did have a person unknowingly show up at her house for a meeting!