Unexpected Legal Risks Your Agency Can Encounter

Many entrepreneurs – especially startup founders, such as digital marketing agencies, are way too excited about all the possibilities opening in front of them to think about possible complications. The most difficult problems can originate not from poor market analysis or imperfect product, but from legal missteps.  Risks often come from completely unexpected directions. Here are some tips for minimizing the legal risks in marketing a new business.

1. Not having website Terms and Conditions or copying them

Some business owners consider website Terms and Conditions to be little more than an empty formality that should be done in the fastest way possible or ignored altogether.  This is an unhealthy approach to the problem, because you are required by law to have them. Besides, legal risks and fines for lacking clearly defined Terms and Conditions, can be quite significant, especially for a small business.

2. Employees using torrents

Of course, torrents have a number of legal applications. But we all know and understand that they constitute but a drop in the ocean. This makes them a legally grey area.

The problem is, when a person downloads torrents individually, he alone faces potential legal issues. But when he does it using corporate hardware, he puts an entire company at risk of being accused of copyright infringement.

3. Anti-bullying laws

Many states have laws protecting employees from bullying in the workplace. Although bullying accusations are usually directed against managers and not business owners.  Associated legal procedures, financial expenses, negative influence on the staff’s morale and time necessary to deal with the problem, can be very costly.


4. Job titles

As they grow, businesses naturally create new departments for different functions (sales, marketing, etc.). Some companies tend to create a number of impressive sounding positions, generally for reputational purposes, to reflect that they are growing fast and need numerous senior managers. However, it can lead to problems.

5. Privacy laws and regulations

If your website collects any kind of personal information about your customers, you should make sure you comply with all relevant laws and regulations, especially after recent law changes in this sphere. This should also be reflected in your Terms and Conditions. This means that this is yet another reason to have it custom written for you by an experienced lawyer.

6. Wrong ownership structure

This is the first and most important decision you must make when you found a marketing agency business. No matter how eager you are to get started, you should give it much thought.

Choose the wrong ownership structure, and not only will you have to pay more taxes, but you will also incur unlimited personal liability for any debts incurred by your company.

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