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The Top 10 Startup Mistakes


Legal Stuff

Below is just a short list of some of the most common (and easily avoidable) mistakes that entrepreneurs make when starting or taking over a business.  By no means is this an exhaustive list.  Rather, it is a starting point for you and your team as you consider next steps.

  1. Jumping into a business without thinking things through completely.
  2. Starting, buying, operating or selling a business without legal and tax counsel.
  3. Not having enough money to make it work.
  4. Relying upon co-workers, friends or an accountant for legal advice.
  5. Operating as a sole proprietor or partnership.
  6. Thinking that planning is only for “large” businesses.
  7. Not planning for succession in the event of illness, retirement or death.
  8. Ignoring corporate formalities, such as Minutes, Elections, and Shareholder meetings.
  9. Using “standard” forms and contracts from office supply stores, online or off-the-shelf software programs.
  10. Doing things a certain way because that is the way that they have always been done without considering better, more efficient alternatives.

(This article is a public resource of general information. The reader should not rely upon information provided herein, and should always obtain counsel from a qualified attorney.)


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About Author

Nate started Yellow Box Studios, a digital advertising agency based in Chicago, in 2010 as a high school senior. He's graduated from the University of Illinois - Urbana Champaign with a degree in Creative Writing and is currently working on a Masters in advertising, also at the University of Illinois.