3 Reasons Why your Sydney Startup Needs a Small Business Lawyer

Yes, Sydney startups are fresh and innovative, offering something people can’t resist. But while starting a business is exciting, let’s be real—it comes with its fair share of challenges.

As a startup, you’re diving into a competitive market, juggling countless tasks while also trying to navigate a complex legal landscape. That’s where a business lawyer steps in—helping you lay down a solid legal foundation and steering you away from potential pitfalls.

In this blog, we’ll break down three key reasons why having a small business lawyer in Sydney by your side makes a huge difference for your startup and show you how the right legal support sets you up for long-term success. 

Reason 1: Compliance with Local Regulations

With regulations changing frequently and varying across industries, it’s easy to find yourself challenged,  especially for new entrepreneurs; therefore, a business lawyer becomes your best ally. 

In Australia, the main piece of legislation governing businesses is the Corporations Act 2001 (Cth). However, you also have to consider Australian Consumer Law (ACL) in Schedule 2 of the Competition and Consumer Act 2010 (Cth), which regulates how you interact with consumers, including protecting them from misleading conduct. 

There could also be other rules you’ll need to follow, such as workplace safety laws or other sector-specific compliance regulations. Investing in tailored advice from a lawyer helps to reduce your risk of incurring penalties or encountering legal issues down the line so that you can focus on growing your business.

Business lawyers assist startups with:

• interpreting legislation and advising you on how it applies it to your business;
• ensuring you meet all record-keeping, financial reporting, and tax obligations; and 
• keeping you updated on changes to the law to help you stay compliant while ensuring your business remains commercial.

Reason 2: Protecting Intellectual Property (IP)

Intellectual property (IP) protection is what sets you apart from your competition. Your logo and business name are valuable assets that should be a priority from day one. 

Our IP protection lawyers will help ensure you take the right steps to secure relevant trademarks for your business. This includes IP conducting trademark searches to ensure your brand is unique and won’t infringe on others. We’ll also help you register your trademark locally with IP Australia.

Having a solid IP strategy helps to safeguard your brand, gives you a competitive edge in the marketplace and lays the groundwork for future growth.

Reason 3: drafting and reviewing contracts

Business contracts are a crucial aspect of protecting your interests and maintaining healthy relationships with clients, employees, and suppliers.  A small business lawyer helps you draft, review, and negotiate contracts that are clear, fair, and legally and commercially sound. 

Common agreements you’ll likely need help with include:

• Partnership agreements: define roles, equity splits, and decision-making processes between partners.
• Employee contracts to ensure you comply with employment laws and set clear terms for salaries, benefits, and job expectations.
• Supplier contracts: protect your business from supply chain disruptions and ensure fair payment terms.
• Sale contracts: outline the terms and conditions of selling your products, assets or services to protect your revenue and reduce disputes.
• Confidentiality agreements: safeguard sensitive business information by establishing clear boundaries for sharing and protecting your trade secrets.
• Terms and Conditions (T&Cs): set the rules for how customers interact with your business, covering payment policies, returns, liability, and more.

Poorly written or vague contracts can lead to misunderstandings, disputes,  and even lawsuits. A lawyer will draft and review your contracts to prevent costly mistakes and advise on how to resolve disputes via commercial negotiation, mediation or arbitration, to help save you time and money associated with engaging in court litigation.

What is the best business structure for a startup?

Selecting your business structure is one of the most pivotal decisions you make as a startup. This is because the type of structure you choose will affect how your business operates and how you obtain finances. Your unique circumstances and business goals will dictate whether you set up as a:

• company;
• partnership;
• trust; or
• other structure.

Whichever road you go down, you’ll want to reduce potential risks and costs, and this is absolutely achievable with the proper legal advice and support of the business.  

Once you decide on the right business structure, it’s time to build your team. Working with an experienced business lawyer in the business structuring stage is the smartest way to approach team-building. 

Common legal pitfalls for startups

While it’s tempting to DIY your legal work, many startups make avoidable legal mistakes that can have serious consequences. 

Here are some common pitfalls and how a small business lawyer help you steer clear of them:

• Ignoring business structure: failing to choose the right structure early can lead to tax issues and personal liability.
• Neglecting IP protection: not securing trademarks can result in losing control of your brand.
• Inadequate contracts: using generic contracts or contracts missing key terms can lead to disputes, lawsuits or legal penalties.
• Overlooking employment laws: not adhering to labour laws can result in fines or employee dissatisfaction.

A lawyer for startups can help you avoid these mistakes by providing tailored commercial legal advice and drafting and reviewing the necessary documents to protect your business.

Starting a new business? – Get legal support today!

Starting a business is challenging enough without having to worry about complex legal matters. With the right legal support, you can avoid mistakes and focus on what you do best – building your business. 

At H+A Legal, we aim to set up your startup for long-term success. Our business lawyers will help you navigate the hurdles of business law, whether you need assistance with compliance, IP protection, contracts, choosing the right business structure, advice on how to grow your business or how to navigate a commercial dispute or more. 

Get in touch with our team today to learn more about how we provide reliable small business legal advice. 

We are your business lawyers in Sydney–and we take care of business.