Congratulations! You have an awesome product or service you want to bring into the world! What now? I recommend thinking about...
1. Business structure
When it comes to finding an appropriate business structure, there are many to pick from: sole proprietorship/sole trader, partnership, company, joint venture, trusts (unit or discretionary), or associations.
It is possible to pick one, or a combination, of these structures to run a business, which could affect tax liabilities, asset protection, personal liability, or the flexibility to change.
2. Protecting names and logos
You have a name for your business that is unique and easily recognizable for registration with ASIC. But registration does not mean someone else can't use the name, and using a name similar to an existing trademark can cause legal issues.
Make sure you conduct a search before registering any names and consider registering your brand and logo as a trademark. This grants exclusive rights to use the brand name/logo and gives protection against others trying to use the same name.
3. Buying from suppliers
Be conscious of who you buy from and what contract terms apply. Chances are, you might gloss over the terms for standard off-the-shelf products because you won't be able to change them anyway. But if you are engaging someone for the development of deliverables/products, review the contract carefully!
As an example, check who owns the final product, when ownership vests, and how the product can be used! If contracts allow the supplier to retain ownership, you could be inviting intellectual property infringement claims later on.
4. Selling to customers
Make sure you know what laws apply before first sale! Obligations change depending on what is sold, the industry, and the local, State or Federal laws that apply. Consider if these apply:
- mandatory codes of conduct;
- product safety standards; and
- licences and permits.
Make sure you also read the resources on the Australian Competition and Consumer Commission’s website. They set out the protections you must provide to customers or small businesses.
5. Hiring employees and contractors
When it comes to employment law, Australia is one of the most extensively regulated countries in the world! So, expect complexity.
Consider whether:
- the role is regulated under a modern award or enterprise agreement?
- employment contracts are sufficient to protect confidential information?
- inventions developed by employees belong to the business?
- other entitlements must be provided, aside from annual leave, sick leave and superannuation?
- there is a process for performance management, poor conduct, or termination?
Keep in mind that general information will never compare to tailored advice, so if you are unsure about how to navigate these issues, reach out!
In the meantime, stay tuned for more insights from Pongan Legal!
For any inquiries or guidance, please don't hesitate to contact Haylen.
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