How Important Is The Legal Side Of Things?

10 replies
I'm just curious...

Reading through alot of competitor's web design businesses' Terms and Conditions, I notice a few things :

1) They have one...lol

2) They probably use contracts too.

3) They probably have insurance of some kind too.

So...Any of you regular guys running a business, any unfortunate experiences with the law and clients? Anyone been sued? How serious are the above things to take into consideration?

I know everything I have read from anyone on here always recommend just diving into business head first and not to worry so much about the 'other' stuff (like legal stuff, business cards, having perfect systems ready to deliver your product etc), but reading these Terms and Conditions kind of...freaks me out a bit.

Thoughts?
#important #legal #side #things
  • Profile picture of the author MissTerraK
    Originally Posted by payoman View Post

    I'm just curious...

    Reading through alot of competitor's web design businesses' Terms and Conditions, I notice a few things :

    1) They have one...lol

    2) They probably use contracts too.

    3) They probably have insurance of some kind too.

    So...Any of you regular guys running a business, any unfortunate experiences with the law and clients? Anyone been sued? How serious are the above things to take into consideration?

    I know everything I have read from anyone on here always recommend just diving into business head first and not to worry so much about the 'other' stuff (like legal stuff, business cards, having perfect systems ready to deliver your product etc), but reading these Terms and Conditions kind of...freaks me out a bit.

    Thoughts?
    My first thought is it is always better to be safe than sorry.

    My second thought is I suppose what type of business you're doing would necessitate how important that aspect is.

    To answer your other question, I do freelance writing and voice over services and can quite honestly say that I have never had any incidents involving clients and the law and have never been sued. I have never even had a refund request.

    That being said, I do know of a marketer that was sued, but that is because they were spouting off with their mouth dissing another rather successful marketer and making fun of their logos by taking them and editing them with negative remarks.

    They certainly crossed some serious lines and were called on it. They lost by the way.

    But as long as you don't plan on doing completely asinine things, I think you should be okay.

    Disclaimer: I am not an attorney and haven't even played one on a TV commercial. Therefore this is not legal advice.

    For real legal advice, see a lawyer.

    Terra
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    • Profile picture of the author jimbo13
      When you start out you might make a few sales to test the marketplace for your goods and services.

      Once you know you have a goer you should have a legal framework in place to protect both yourself and the customer.

      Most Lawyers will see you for 1 hour Free just like an Accountant will.

      You should see both.

      The Accountant will advise you on the best structure for your business.

      The Lawyer will make sure you are protected.

      So for the sake of a couple of hundred why wouldn't you?

      If someone decided to sue you for damaging their reputation (real or imagined) you could face bankruptcy even if you win in court.

      Happens all the time.

      Moreover, Lawyers and Accountants know lots and lots of people. Even a smallish practice will have around 400 businesses on their books.

      Dan
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  • Profile picture of the author iAmNameLess
    Originally Posted by payoman View Post


    So...Any of you regular guys running a business, any unfortunate experiences with the law and clients? Anyone been sued? How serious are the above things to take into consideration?

    I know everything I have read from anyone on here always recommend just diving into business head first and not to worry so much about the 'other' stuff (like legal stuff, business cards, having perfect systems ready to deliver your product etc), but reading these Terms and Conditions kind of...freaks me out a bit.

    Thoughts?
    Everything you read from anyone here always recommends diving into business? You must not have read much of what I have said!

    The only time where I would suggest people to just get started is if they aren't building a business, and only freelancing on the side small time. Even then, you should become friends with an attorney.

    How important is the legal side? The most important.

    You have to understand if you are starting a business, or you're in business, then you already know there is a market and you already know how to get clients.

    Unfortunate things with the law... being sued? Yes... I've been sued by someone who received a completed website, to their liking but later on wasn't happy. People can tell you or try to prepare you to reduce the likelihood of anything like that happening but what is rarely spoken about is what to do when that fails.

    If you're just a freelancer doing like 3k/mo... maybe you don't need in depth contracts since you are really a 1099 not a business. The business you on things for will likely have you sign some kind of contract though.

    Terms and conditions on a website, doesn't mean much. If you want one, make one, but it isn't something that I believe really matters in the service industry, maybe if you run a SaaS business model but probably not for websites.

    If you're running a business... get an accountant and lawyer ASAP. The accountant will likely be the most help early on, but you want a relationship with an attorney for advice, and to use when you do have a problem.

    Cash is king.. if you use contracts with clients, and you accept credit cards, no contract is going to protect you from a chargeback. You can file a civil suit but good luck trying to collect.

    I waited a while before getting an accountant... don't make the same mistake as me.

    Things rarely talked about that would be good for you to research and learn:
    - Legal business setup (sole prop, s corp, c corp, llc, etc. )
    - Bookkeeping
    - Taxes
    - Legal
    - Documentation
    - Project management
    - Fiscal responsibility (not just making money)
    - Setting up systems
    - The reality of outsourcing
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    • Profile picture of the author Jonwebb
      in all honesty this is one of the best posts I've read here.

      Bookkeeping, taxes are all extremely important and more often then not you are not gonna know what you need to know to protect yourself. Get a accountant, get legal counsel as often as you can. If you an afford it outsource your bookkeeping. When in doubt always get a professional to do the work for you.
      Originally Posted by iAmNameLess View Post

      Everything you read from anyone here always recommends diving into business? You must not have read much of what I have said!

      The only time where I would suggest people to just get started is if they aren't building a business, and only freelancing on the side small time. Even then, you should become friends with an attorney.

      How important is the legal side? The most important.

      You have to understand if you are starting a business, or you're in business, then you already know there is a market and you already know how to get clients.

      Unfortunate things with the law... being sued? Yes... I've been sued by someone who received a completed website, to their liking but later on wasn't happy. People can tell you or try to prepare you to reduce the likelihood of anything like that happening but what is rarely spoken about is what to do when that fails.

      If you're just a freelancer doing like 3k/mo... maybe you don't need in depth contracts since you are really a 1099 not a business. The business you on things for will likely have you sign some kind of contract though.

      Terms and conditions on a website, doesn't mean much. If you want one, make one, but it isn't something that I believe really matters in the service industry, maybe if you run a SaaS business model but probably not for websites.

      If you're running a business... get an accountant and lawyer ASAP. The accountant will likely be the most help early on, but you want a relationship with an attorney for advice, and to use when you do have a problem.

      Cash is king.. if you use contracts with clients, and you accept credit cards, no contract is going to protect you from a chargeback. You can file a civil suit but good luck trying to collect.

      I waited a while before getting an accountant... don't make the same mistake as me.

      Things rarely talked about that would be good for you to research and learn:
      - Legal business setup (sole prop, s corp, c corp, llc, etc. )
      - Bookkeeping
      - Taxes
      - Legal
      - Documentation
      - Project management
      - Fiscal responsibility (not just making money)
      - Setting up systems
      - The reality of outsourcing
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  • Profile picture of the author Jack Gordon
    I find it is productive to think about this a different way.

    Most of the time, people think of legal expenses as a cost of doing business and may procrastinate until the flow is a little better. However, once you get sued for something - justly or not - you are going to spend a ton of money to defend yourself.

    Now, from this vantage point, if you could have avoided getting yourself into a vulnerable position by spending a few hundred on legal counsel up front, would it have been worthwhile?

    Answer that, and your course should be clear. The same goes for accounting advice. If you are not properly set up (and functioning) as a legal entity, you risk exposing your personal assets to business liabilities.

    From yet another angle, why wouldn't you limit your risks at the front end of a relationship, when everyone is anxious to get past the formalities and into the fun part? Once the new car smell wears off, good luck getting your clients to sign anything else that might protect you in the future.
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  • Profile picture of the author shane_k
    A word of advice, whenever you hear someone telling you that you don't need a lawyer, or that they are not that important, remember if you get sued, that person giving you that advice will not be the one paying the consequences.
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  • Profile picture of the author RichBeck
    When thinking about business being "done on a handshake," it reminds me of this......



    We all know Jerry gets screwed because he has no signed contract...

    It makes me wonder...

    In real life, how many Attorneys would walk away from a mid six figure payday without litigation...

    Plus, Kush says.... "Here's my agent, Jerry Maguire." at the airport in front of a bunch of reporters.......

    Of course, I'm not an Attorney.....

    Moral of the Story: Get everything written down in a formal contract... and get it signed. I've actually had clients attempt to walk off with the contract without signing....

    All The Best,

    Rich Beck BCIP, MCSD, MCIS
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  • Profile picture of the author Aaron Doud
    Very important. Depending on what you are selling you can do a little DIY at first. But soon after that you need to get everything in order by paying for a lawyer and such.

    If you have the money and know the idea will work go ahead and do that from day one.
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  • Profile picture of the author Rus Sells
    This is how important it is to have yourself covered.

    Suing Your SEO: Can An Agency Be Held Liable For Poor Results?
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  • Profile picture of the author NewParadigm
    An ounce of prevention is worth not 1, but 10 lbs of legal cure. Get things set up. Justice is extremely expensive untangling things after the fact.
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    In a moment of decision the best thing you can do is the right thing. The worst thing you can do is nothing. ~ Theodore Roosevelt

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