Starting a business doesn’t only require vision, strategy, and consistency. It also requires a minimum legal structure to protect the business, its partners, and its finances. However, in practice, most entrepreneurs overlook legal aspects that seem “small” but can turn into major losses, lawsuits, internal conflicts, or even the closure of the company.
Below, we explain the four most common legal mistakes and how to avoid them before they become a costly problem.
Many entrepreneurs launch a project relying on verbal agreements, WhatsApp messages, or a partner’s “word.”
The result: misunderstandings, disputes, and obligations that cannot be enforced.
Why is this a problem?
There is no way to enforce compliance.
You cannot claim payments, deliveries, or obligations.
It affects the business relationship and the project’s stability.
How to avoid it:
Formalize everything in writing: contracts, terms, scope of services, fees, and deadlines.
Define what happens if one party breaches the agreement (penalties, interest, dispute resolution mechanisms).
Use clear contracts reviewed by professionals.
The golden rule: if it matters to the business, it must be in writing.
Starting a company with friends, family, or colleagues is common, but doing so without a shareholders’ (or partners’) agreement is one of the most expensive mistakes.
What problems does it cause?
Conflicts over profit distribution.
Disputes over roles, functions, and responsibilities.
Partners wanting to leave without clear rules.
Deadlocks in strategic decision-making.
Investors who lose confidence without formal agreements.
What should a shareholders’ agreement include?
Roles and contributions of each partner.
Ownership percentages and voting rights.
Exit policies (sale of shares, minimum holding periods).
Dispute resolution mechanisms.
Non-compete and confidentiality clauses.
A solid shareholders’ agreement is literally the life insurance of a startup.
“We’ll formalize it later,” “They’re just a freelancer,” “It’s only temporary”…
These phrases are the gateway to labor and financial chaos.
What risks exist?
Labor lawsuits due to lack of contracts or benefits.
Risk of collaborators misusing or taking sensitive information.
Intellectual property issues (who owns the software, artwork, or content created?).
Unjustified payments or administrative disorder.
How to avoid it:
Properly structured employment contracts or service agreements.
Confidentiality, intellectual property, and non-compete clauses.
Clearly defined deliverables, deadlines, and payment terms.
Proper document registration and recordkeeping.
A team without contracts is like a house without foundations.
This mistake may seem minor, but it is one of the most common and costly.
Consequences:
You cannot prove expenses during audits or before tax authorities.
You cannot claim defective services or products.
You are left without legal protection in case of fraud.
The business loses financial control.
What do you always need?
A contract or commercial agreement.
A valid invoice, receipt, or proof of payment.
Transfer records and formal communication.
A payment without legal support is money that can be lost forever.
Most entrepreneurs focus on sales, branding, and operations… but forget the most important thing: protecting the business from the ground up.
Avoiding these four mistakes doesn’t just save you money—it saves you time, conflicts, and headaches.
