You’re starting your business - maybe you’re freelancing, running a creative studio, or launching your own consulting practice. You’ve got clients, ideas, and energy. But from a legal perspective, if we could only do three things at the outset, what would suggest they be?
At Counsel Club, we believe in building smart, scalable legal foundation, without over-complicating. So, if you’re just getting started, here’s what we recommend.
1. Set Up Your Entity & Get Your Tax House in Order
One of the biggest perks of running your own business? Business deductions. But to take advantage of them properly, you need to have the right structure in place.
Your options:
- If you’re working solo, you could operate as a sole proprietorship, but that means your personal assets are on the line if anything goes wrong.
- A simple LLC (Limited Liability Company) offers personal liability protection and gives you the flexibility to structure your taxes in a way that benefits you.
- Either way, you’ll want to get an EIN (Employer Identification Number) from the IRS, which you’ll use for tax filings, opening a business bank account, and keeping personal and business finances separate.
You can set up an LLC through Counsel Club’s concierge services or directly through your Secretary of State’s office. Whatever route you take, start tracking your business expenses asap.Your future self (and your accountant) will thank you.
2. Get a Solid Client Agreement in Place
Whether you’re offering design services, content writing, photography, coaching, or consulting, a clear, well-drafted client agreement is key. Why? Because even if your clients are small now, your business is growing. Start strong.
Your contract should cover:
- Payment terms: What are you charging? When are you getting paid? What happens if they don’t pay?
- Project scope & deliverables: Avoid scope creep (aka unpaid extra work).
- Intellectual property (IP) ownership: Who owns what you create?
- Confidentiality: Make sure your counterparty protects your confidential information.
- Termination terms: How does the contract end, and what happens if things go south?
Counsel Club has a range of ready-to-use agreements from simple freelance contracts to more complex MSAs (Master Services Agreements). We’ve also written about consulting agreements, so check that out if you need more guidance.
3. Put Agreements in Place for Anyone Working With You
If you’re hiring a contractor, consultant, bookkeeper, accountant, or assistant, make sure you have a written agreement. It doesn’t have to be complicated, but it does need to clearly outline expectations around:
- Scope of work: What they’re responsible for
- Payment terms: How and when they’ll be paid
- Confidentiality: Keeping sensitive business info private
- Ownership of work: Ensuring you own anything they create for your business
As your business grows, these agreements will evolve. But even at the beginning, having these basics in place prevents misunderstandings and protects your business. Counsel Club’s concierge services can also review contracts to make sure they work for you.
Why This Matters (And How I Learned It Firsthand)
Counsel Club didn’t start as a tech platform. We started as a law firm. And when I launched my firm, I had to make the same calls: Where do I spend my time? What’s actually important?
For me, that meant:
- Setting up an LLC to protect my personal assets
- Having a strong engagement letter with my clients
- Creating a simple agreement for contractors I hired
Your business will grow. Your legal needs will evolve. But if you set a strong foundation now, you’ll be in a much better position later.
