One of the best parts about being a small business owner is that you get to exercise your creative muscle wayyyy more than you would if you were sitting in a corporate cubicle.
The typical 9-5 jobs usually come with a strict set of rules for what you can and can’t do (even if it’s a good idea!) and it can put a real damper on things especially if you’re a natural creative.
I would argue that this is one of the most common reasons that people decide to start their own business in the first place. They want to be able to call the shots, create whatever they want, and not have anyone shut down their ideas for the sake of “professionalism” or “company code.”
And as a small business owner myself, I really do get this! It’s pretty freaking cool being able to wake up in the middle of the night, have a new idea, and wake up the next day ready to act on it without having to get anyone’s approval or permission.
But as a small business owner that’s ALSO a practicing lawyer and teaches other small business owners how to do business legally, I’ve learned that there’s a certain balance that you have to master between creativity and legalities.
Because while yes, you can technically do whatever you want as a business owner in terms of what you create and how you create it, there are still rules you’re legally required to follow!
And no, I’m not talking about the “rules” that your old boss made up one day and put in the company handbook just for the heck of it.
I’m talking about REAL rules that could land you in legal hot water if you dismiss them – whether it be with the IRS, FTC, or any other 3 letter acronym government agency.
Honestly, just being aware of these “rules” is probably the BIGGEST challenge for creatives because you’re extremely excellent at what you do, but you simply don’t know what you don’t know.
That’s why I’ve made it MY job here at The Boutique Lawyer to make sure you’re aware of these things so you can keep doing the thing you love WHILE doing it legally.
Because here’s the thing: the law doesn’t care if you don’t know something. As the saying goes, “ignorance of the law is no defense” and it applies to both, criminal and civil cases, such as IP infringement and breach of contract.
With that said, in this blog post you’re going to learn the 5 most common legal pitfalls for creative entrepreneurs so that you can be AWARE of what needs your attention and THEN you can intentionally carve out time (I recommend at least 1 dedicated time slot per month) to make sure you have all of it in tip top shape.
Because unfortunately, most legal things aren’t just a “one and done” situation. In fact, I encourage at least quarterly check-ins to make sure it’s all taken care of on an ongoing basis!
5 Common Legal Pitfalls for Creative Entrepreneurs
1. Intellectual Property Infringement
If I had to pick only one MAJOR issue in the online business space (even though there are lots!), it would be IP infringement – aka people stealing other people’s work.
I can’t tell you how many times I’ve received emails or DM’s from creatives telling me that they caught someone using their copyrighted work and selling or promoting it as their own.
And TBH, as a lawyer AND creative myself, it makes my blood boil! 😡
Which is why this makes the top of my list as what NOT to do in business. Yes, it should go without saying, but it’s so extremely common that I have to continue shouting it from the rooftops.
When you’re coming up with new ideas – whether it be a new lead magnet for your audience, a new program or service for your offer suite, or even a content topic – MAKE SURE it’s your own!
And yes, I do realize that there’s really nothing new under the sun. There’s a good chance that the idea you have has already been done in some capacity and that’s just inevitable. But the point here is to make sure that the way YOU do it is original to you.
Oh and once you do create the thing you want to create, make sure you implement the right copyright measures to protect yourself, your business, and all of your work. HERE’S HOW!
And in the unfortunate case that someone copies you down the road? HERE’S WHAT TO DO!
2. Lack of Contracts
As your certified contract girlie, this one probably should've been #1, but I digress…
I’ve said it before and I’ll continue to say it until TBL doesn’t exist (which I hope is no time soon), your business NEEDS contracts!
Without clear, written legal agreements, you’re really just taking a chance on everything that you do within your business and NONE of it will stand in the eyes of the law if it ever gets to that point.
Not sure what type of contracts or legal agreements your business needs? A good place to start includes:
- Website Privacy Policy
- Website Terms of Use
- Client Services Agreement (shop for your specific industry HERE or use this general Professional Services Agreement)
3. Privacy and Data Protection
Speaking of website privacy, this is something that I see small business owners and creatives missing the MOST!
Did you know that if your website is missing a simple privacy policy you could potentially be fined up to $2,500+ per visitor to your site?! 🤯
As a lawyer that supports small business owners, my goal is to help you keep more of your money in YOUR bank account and out of the hands of the government and one mega way to do that is to make sure your website is legally backed.
A privacy policy is simply a detailed notice that is published on a website, typically found in the footer, that outlines how that specific website collects, uses and manages a user’s personal information.
This policy has one job: to inform your website users of what to expect so THEY are protected and so are YOU!
If you don’t already have a privacy policy on your website, the good news is that this one is a super simple fix – you can grab the customizable Website Privacy Policy Template for under $50 and implement this on your website immediately!
4. General Disclaimers
As a creative, you’re typically creating things that can potentially provide massive results for someone.
For example, if you’re a copywriter, you might create a course that teaches people how to write their website copy which could potentially generate new leads and those leads could turn into paying clients.
So technically, your course *could* result in someone earning more money!
But you can’t PROMISE that!
Which is why a General Disclaimer is needed!
A General Disclaimer is a statement that is used to limit or exclude liability for certain information or actions and is typically included on websites, documents or other materials to provide information to your customers about the limitations and conditions of use.
When you have a General Disclaimer for your course or other services that could lead to growth, you are essentially claiming that you aren’t responsible for how the customer implements or uses the information they’re given.
With this disclaimer, you are clearly stating that the information provided is for educational purposes only and you aren’t promising any specific results This disclaimer also protects you in the instance of any mistakes or errors in the information you provide or if the information isn’t exactly up to date.
Overall, the General Disclaimer is your legal bestie if someone tries to come after you claiming the information you provided did not help them or was incorrect.
5. Failure to Comply with Advertising Laws
In the world of online business, affiliate marketing, paid promotions, and partnerships are becoming HUGE and I’m here for it… when you go about it legally!
As a creative, I believe one of the best things you can do is collaborate with other creatives in and outside your industry, but you are 100% legally required to disclaim your participation in gifted collabs, brand deals, affiliate programs, etc.
Any type of promotion that can lead to you receiving money, requires a disclaimer.
As a business owner, you could potentially face an enforcement action (aka get sued) under the Federal Trade Commission for failing to disclose gifted, paid or sponsored collaborations with brands or influencers.
While I am a huge supporter of affiliate marketing and I encourage you to pursue opportunities like this, make sure you’re backing yourself up legally before doing so!
Overall, being a creative business owner – regardless of your industry – is quite possibly one of the best jobs in the world. It gives you so much freedom and the ability to do the things you really love and I’m SO here for that!
What I’m not here for though is when the legalities of it all starts to be ignored! By being aware of common legal pitfalls, you can ultimately protect your work, your reputation, and your bottom line.
My hope is that through the TBL blog and my free resources you get the information and education you need to do BOTH – be a creative while also implementing all of the “rules” that are required of you as a business owner!
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If we haven’t had the chance to *virtually* meet yet, hey I’m Amber – not a regular lawyer, but a cool lawyer that helps online business owners sell without getting sued.
If you like what you just read and want more cool lawyer things in your life, here’s a few ways to stay connected:
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And if you’re in need of legal resources that you can ACTUALLY understand? Here’s a few ways I can help:
Step into TBL’s free library of legal resources for creative entrepreneurs where we throw open the doors and spill the tea on what works and what doesn't when it comes to legal protection, systems and sales.
Browse the contract template shop to find what’s missing in your biz and easily implement it with a plug and play template!
Need something else? Send me a DM! Always happy to lend a legal hand when I can.