While many small business owners feel that legal protection is costly or intimidating, it doesn’t have to be. With the right guidance, it can be accessible, practical, and a powerful tool to protect and grow your business. Joining us on today’s episode of The Small Business Show is Andrea Sager, founder and CEO of Legalpreneur, a lawyer, serial entrepreneur, and host of The Legalpreneur Podcast.
“You're going to spend way less money if you protect your business up front instead of waiting until you need a lawyer.”
To start today’s discussion, Sager advised entrepreneurs to form an LLC on day one. The goal is to separate personal and business assets, which protects them from future liabilities even if their business has few assets at the beginning. She also recommends using attorney-drafted contract templates to safeguard business operations, partnerships, and relationships from the start.
Another key area, Sager said, is intellectual property (IP) protection. Entrepreneurs should know what IP they’ve created and safeguard it early, whether through patents, trademarks, or copyrights. “Protecting your IP, that’s going to take you a long way down the road,” she said. She added, “It’s going to save you probably 10 times what you would spend if you waited.”
She shares examples of entrepreneurs who were forced to change their business names years after launching because they unknowingly infringed on trademarks. Then, she cautions against relying on AI-generated contracts from tools like ChatGPT, noting that they often fail to include essential legal protections.
Further, Sager highlights the importance of clear agreements when entering partnerships, even with close friends or family. She explained that many disputes arise because partners operate without a formal operating agreement or defined roles.
For entrepreneurs looking to grow and protect their businesses, Sager confirms that the best first step is building a relationship with a qualified attorney.
The Small Business Show