Launching a small business in 2025? You’re in good company. But while many entrepreneurs focus on branding, sales, and product development, legal issues are often overlooked—until it's too late.

Avoiding just a few key mistakes can protect your business from costly lawsuits, IRS penalties, and lost opportunities. Here’s your ultimate legal checklist to launch smarter in 2025.

✅ 1. Not Forming a Legal Entity

Mistake: Operating as a sole proprietor without legal protection.
Fix: Form an LLC or corporation to protect your personal assets from business liabilities and creditors.

✅ 2. Skipping Operating Agreements or Bylaws

Mistake: Partners go in “handshake-only.”
Fix: Draft clear operating agreements or bylaws to outline ownership, decision-making, profit splits, and exits.

✅ 3. Ignoring Intellectual Property (IP)

Mistake: No trademark, no copyright, no protection.
Fix: Trademark your brand, logo, or product name. Register copyrights for original content and secure IP assignment from contractors.

✅ 4. Misclassifying Workers

Mistake: Treating employees like independent contractors.
Fix: Follow IRS and DOL guidelines to properly classify workers. Misclassification can trigger audits, back taxes, and lawsuits.

✅ 5. No Written Contracts with Clients or Vendors

Mistake: Verbal agreements or vague email chains.
Fix: Use written contracts with terms covering payment, deliverables, liability, and dispute resolution. Templates aren't one-size-fits-all—get them reviewed.

✅ 6. Overlooking Data Privacy Rules

Mistake: Collecting emails or user data with no privacy policy.
Fix: Comply with privacy laws (like CCPA or GDPR) with a clear, accessible Privacy Policy and Terms of Service—especially if you run a website or SaaS.

✅ 7. Forgetting Business Licenses & Permits

Mistake: Launching before checking state, local, or industry-specific licenses.
Fix: Research and apply for the required licenses in your state and industry to avoid fines or shutdowns.

✅ 8. Not Protecting Founders’ Equity

Mistake: Not issuing equity or vesting schedules from day one.
Fix: Document founder shares early. Use vesting schedules to avoid future disputes if someone leaves.

✅ 9. Missing Employment Law Requirements

Mistake: No offer letters, employee handbooks, or wage compliance.
Fix: Even one employee triggers labor law requirements. Follow federal and state guidelines on wages, breaks, and anti-discrimination.

✅ 10. Waiting Too Long to Hire Legal Help

Mistake: DIY-ing until there’s a problem.
Fix: Invest in legal counsel early. A small legal spend now can save you thousands in cleanup later.

📌 Launch Smart with Legal Confidence

At Shperun Law, we offer flat-fee packages and on-demand general counsel for:

• Startups

• Small business owners

• Creators & freelancers

• SaaS and e-commerce founders

📞 Book a free consultation to start your business the right way.