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Starting a business is so exciting – the branding! The color scheme! The collaborations with other like-minded women – that a lot of the time we forget about protecting what we have worked so hard to create. Here are the top 5 legal mistakes I see women make when starting their online businesses. 1)    Not Forming a Business Entity Forming a business entity that limits liability acts as a wall around your personal assets (your home, bank account, car, etc.) in the event someone were ever to sue your company and get a judgment. While both LLCs and Corporations limit your personal liability, the two entities differ in terms of how taxes are paid, how money is raised, and what paperwork needs to be filed. It’s a good idea to consult an attorney and/or accountant to see which is right for your business needs.  2)    Not Having Contracts  Sometimes business owners feel awkward making clients sign such formal agreements. But CONTRACTS actually help to avoid uncomfortable situations by establishing expectations and setting clear boundaries between parties. Contracts set forth the scope of work, define deliverables, and state how parties get paid and what happens when one party fails to pay. They limit a party's liability and determine where and how disputes can be handled. You must have a client contract to protect your income, an independent contractor agreement with your contractors, and a non-disclosure agreement with anyone who comes into contact with confidential business information. 3)    Not Having Website Policies Did you know that if you don’t have a PRIVACY POLICY on your website you could be fined by the government or sued by private third parties, or have your Google/Facebook/Instagram ads shut down? Your Privacy Policy tells users how you collect and store user data. Both California and the EU have privacy laws that require specific legal language in your Privacy Policy. Your Website Terms of Use is also one of those very important legal documents located in the footer of your website. It’s your contract with anyone who visits your website or purchases your products, it tells visitors how they can behave, what kind of comments they can post, states any user account policies, explains your refund and payment policies, protects your intellectual property, and finally, spells out how and where any disputes are handled.  4)    Not Having Disclaimers DISCLAIMERS are necessary if you giving any kind of advice on your website that involves an industry requiring any kind of license (medical, legal, financial industries). A disclaimer states that the reader should not rely on your advice, which protects you from liability. If you are receiving money for a product or were given a product for free in exchange for an endorsement, you also need to have an affiliate disclaimer per the Federal Trade Commission. 5)    Not Protecting Your Intellectual Property  You’ve spent time and money creating your digital product (photos, e-books, videos, courses, blog posts) but you have very little leverage against anyone who steals these things from you unless you register for copyright protection. You’re going to want to trademark your brand name and course name to prevent copycats too.     Want to learn more about how to legally protect your business?Download the FREE Start-Up Legal Guide!

“They say imitation is the sincerest form of flattery, but sometimes being copied doesn’t feel very good. When I was young, my little sister loved to copy my outfits. One time during a vacation, I had to change three times because she kept changing her outfit to match mine. I finally thought I had gotten away with expressing my individuality in a denim-on-denim outfit when my sister and I both got in the car with unmatching clothes. Turns out my mom had secretly conspired with her and brought her an outfit to match mine, which she promptly changed into in the car. Now, of course, she is the way more fashionable sister and I steal from her closet all the time. Having your work copied in a business setting feels particularly icky. You’ve worked hard to design your piece of art or literature, and someone else shouldn’t get to take credit or make money from your creativity.  Luckily, the law agrees. Copyright law protects original works of authorship, which includes things like literary, musical, architectural works, and motion pictures. So what can you do to protect your business and stop copycats? STEP 1: REGISTER YOUR WORK FOR COPYRIGHT PROTECTION Copyright protection exists automatically the moment the work is created. But you’ll want to REGISTER YOUR COPYRIGHT so that you can sue under the federal copyright statute and be eligible for statutory damages and attorney’s fees if you’re successful in litigation.   STEP 2: NOTIFY THE INFRINGER  It never hurts to ask nicely. When you notice a person or company is copying your design, you can reach out to them and educate them that they are using your work, and that it’s protected under copyright law. It may be an innocent mistake, in which case they will probably just take it down.   STEP 3: ASK THE HOSTING WEBSITE TO TAKE THE INFRINGING MATERIAL DOWN If a company is infringing on your work on a website or photo-sharing platform, under the Digital Millennium Copyright Act, you can reach out to the service provider and ask that they take the infringing material down. Note: the website is motivated to do this because they do not want to get sued. Read more about the DMCA takedown process HERE.   STEP 4: HIRE A LAWYER TO SEND A CEASE AND DESIST LETTER Nobody likes hiring a lawyer. I get it, you’d rather spend your money on a pair of Louboutins. Or if you have a kid who steals your money, on groceries. You can write this letter yourself, but since the object of a cease and desist letter is to scare the copycat into stopping their behavior without you having to pursue a costly lawsuit, you’re better off ponying up the money now.  If they don’t listen…   STEP 5: BRING A LAWSUIT If the person/company stealing your work is still refusing to take down the infringing material, you may bring a lawsuit if your work is registered. Lawsuits can be expensive (like 10k+ to start) so it’s important to know what you’re able to gain. Under the Federal Copyright Act, remedies include an injunction (taking down the infringing material), damages, and attorney’s fees. You’re either able to recover your actual damages and any additional profits of the infringer, or you can elect statutory damages, which range from $750 to $30,000. When the copyright owner can prove that infringement was committed willfully, the court may increase the award of statutory damages to up to $150,000. Want to learn more about how to legally protect your business?Download the FREE Start-Up Legal Guide!

“Blogging is just a hobby right? Maybe not so much. The content marketing industry is projected to be worth $400 billion by the end of 2020. There is one blog for every three people in the world. Blogging is a business venture like any other, and therefore subject to formalities and laws like traditional businesses. Here are 3 common mistakes I see bloggers make and what you can do to avoid them…   MISTAKE #1: NOT USING REQUIRED AD DISCLOSURES If you were given money for a product or were given a product for free in exchange for an endorsement the Federal Trade Commission requires you to disclose it. These disclaimers need to be “clear and conspicuous,” for example in the first few lines of an Instagram post before the “more” button or within the blog post itself (i.e. not just buried in your terms and conditions). Furthermore, your endorsements have to reflect your actual opinions and experiences with the product. You can read more about FTC affiliate/endorsement disclaimers HERE:    MISTAKE #2 NOT HAVING TERMS AND CONDITIONS/PRIVACY POLICY/ APPROPRIATE DISCLAIMERS  When I started my blog back in 2014 I didn’t have a Terms and Conditions and Privacy Policy because it felt overwhelming to draft one (and I’m a lawyer). I get that it is something a lot of creatives put off because they don’t know where to begin, but the truth is these documents are so important to protect you from liability. If you have a website you need a Website Terms of Use, which is your contract with visitors of your site. It tells users how they can behave, what kind of comments they can post, and limits your liability. You also need a Privacy Policy, which tells your website, visitors, how their personal data is being stored and shared. You’re legally required to have one if you’re reaching anyone in the EU or California and if you run Google or Facebook ads, or use Google Analytics.   MISTAKE #3 RELYING ON BRAND CONTRACTS AND GIVING TOO MUCH AWAY  Brands often have the upper hand in the brand-influencer relationship due to their resources and legal teams. As a result, Influencers are often presented with contracts that have very unbalanced terms. For instance, these contracts could provide that the Brand is going to own all of the Influencer-created content during the brand campaign forever. That means the picture you have promoting the brand could end up on that brand’s billboard 10 years from now, and you wouldn’t get any extra $ (unless it was provided for in your contract). The solution?  If you’re an influencer/blogger you can negotiate things like giving away your intellectual property rights and exclusivity requirements by asking for more $.  Want to learn more about how to legally protect your business?Download the FREE Start-Up Legal Guide!

“Unfortunately, scary legal situations can happen to anyone at any time. Luckily, there are things you can do. Here are five scenarios I see all the time - and how you can stop these problems from happening to you… 1) THE BUSINESS PARTNERSHIP GONE BAD Problem: You start a business with your BFF, but things go south and she bails. So you build the business up yourself, you start making a profit, and she suddenly reappears demanding half of all that you’ve earned. You didn’t think to draw up a partnership agreement (you were friends after all) and now it’s her word against yours. Solution: Draw up a partnership agreement before you invest any money or take on clients together. If you can’t afford to hire a lawyer, write up an agreement with basic terms like who owns what percentage of the business, how profits are divided, etc.    2) SOMEONE STEALS YOUR PHOTOS, E-BOOK, COURSE, BLOG POST, ETC. Problem: This stuff, called intellectual property, gets stolen all the time. Intellectual property includes copyright, trademarks, and patents.  Solution: You can protect yourself by registering your copyright and trademarks. Copyright protection is automatic, but you’ll want to register your work so that you can sue under the federal copyright statute and be eligible for statutory damages and attorney’s fees if you’re successful in litigation.   3) YOU GET SUED, AND YOUR PERSONAL ASSETS ARE AT STAKE. Problem: Nothing is scarier than having a process server show up at your house with a lawsuit, telling you that you’ve been sued. Except when that lawsuit ends with you having to hand over the 100k in the bank account you’ve been saving for a downpayment. Imagine this scenario. You’re innocently running your online business. You haven’t wanted to concern yourself with the “legal stuff” so you don’t worry about forming a legal business entity. You’re just running a small online business and blog, right? Wrong. Solution: Even if you’re a blog, even if you’re a small online business, you need to protect your personal assets by forming a legitimate business entity and complying with all of the formalities.    4) YOU HAD A DEAL WITH SOMEONE, BUT NOW THE DETAILS ARE FUZZY. Problem: We all have a friend who “doesn’t remember” borrowing our romper.  Verbal agreements aren’t going to cut it for your business.   Solution: Contracts. Contracts spell out the expectations of each party, establish pricing and deadlines, and set forth consequences for when one party doesn't do something they said they would do.  No matter what you’re selling, you need one.   5) YOU BRING ON AN INDEPENDENT CONTRACTOR OR SHORT TERM EMPLOYEE TO HELP WITH AN ASPECT OF YOUR BUSINESS, AND THEN THEY QUIT AND SPILL YOUR SECRETS TO YOUR COMPETITOR. Problem: Your secret is safe with me and my best friend. But seriously, some people aren’t that good at secrets. Luckily, this isn’t an excuse when you have a non-disclosure agreement.  Solution: This kind of contract creates a confidential relationship between parties. So whether you are consulting with a potential employee or speaking to a potential investor, a Non-Disclosure Agreement will keep your confidential information a secret. Want to learn more about how to legally protect your business?Download the FREE Start-Up Legal Guide!