Don’t start a side hustle without taking this key legal step, says attorney: It’s the ‘bare minimum’
By Ryan Ermey
Copyright cnbc
The biggest mistake aspiring side hustlers make is not thinking about the future of their business, Harris says. While your content creation or crafting business may seem like small potatoes now, it will ideally grow into something bigger and in need of evolving legal protections.
“You have to think big,” Harris says. “Where do you want to take this, and how do we protect not only what you’re doing now, but your plans for the future?”
The last thing you want to do, she says, is build a thriving and lucrative brand only to find out that someone else is legally entitled to a piece of your profits.
That’s why an aspiring entrepreneur would be wise to sit down with an attorney, who can provide an intellectual property strategy that goes beyond a few legals documents you may be tempted to find for cheaper online, Harris says.
Harris says she’d be wary of any firm charging less than $1,500 to get your documents in place and to help you come up with a strategy.
Other protections to discuss with your attorney include copyright — similar to a trademark but for work you’ve authored, such as photographs, songs or articles — and forming a limited liability partnership, which helps separate your business and personal assets, and protects you financially in the event of a lawsuit.
“A lot of times people underestimate what they’re building. They think, ‘Oh, it’s just a side hustle,'” Harris says. “But if they’ve been using this name, they’ve been building this image or this brand, it’s so important that they own it.”
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