Starting a business is full of big dreams, bold ideas, and let’s be honest, a lot of legal landmines. At Clausewitz Reyes, we’ve seen too many smart, passionate founders in San Antonio get tripped up by the same preventable legal mistakes.
If you’re in the early stages of launching your startup, this list is for you. Avoid these common missteps now and set your business up for long-term success.
Mistake #1: Skipping the Legal Structure Talk
Many founders default to sole proprietorships or partnerships without fully understanding the risks. If your business is sued or runs into debt, your personal assets could be at stake.
How to avoid it:
Choose the right legal structure: LLC, S-corp, or C-corp, based on your goals, liability exposure, and tax situation. Not sure what fits? Speak with a business attorney before filing to avoid complications down the line.
Mistake #2: Not Putting It in Writing
A handshake and verbal agreement might feel simpler in the moment, but when things go sideways, you’ll wish you had more than just word of mouth or memory to rely on.
How to avoid it:
Put formal agreements in place for co-founders, contractors, vendors, and even friends or family helping out. Clearly outline roles, equity splits, payment terms, and ownership of intellectual property to avoid future disputes.
Mistake #3: Overlooking Local and State Compliance
Texas may be business-friendly, but that doesn’t mean you can overlook local rules and regulations. Many startups forget about essential requirements like city permits, state licenses, or zoning restrictions. Failing to address these can lead to fines, delays, or even the shutdown of your business, so it’s crucial to stay informed and compliant from the start.
How to avoid it:
Make sure you understand and meet all the legal requirements to operate in San Antonio. This includes checking with the City of San Antonio for permits, registering for sales tax with the state, and ensuring your business location is properly zoned.
Mistake #4: Using Generic or Outdated Contracts
Copying and pasting from online templates might seem convenient, but those documents often leave out crucial protections, or include terms that don’t even apply to your business.
How to avoid it:
Have an attorney draft or review contracts so they reflect your specific operations and consider Texas law. Investing in solid legal documents now can prevent costly legal issues later.
Mistake #5: Ignoring Intellectual Property
Your business name, logo, product designs, or even marketing materials can all be protected, but many founders wait too long to secure their rights, which can lead to costly mistakes or losing those protections altogether.
How to avoid it:
Look into trademarks, copyrights, or patents early on. The sooner you protect your intellectual property, the harder it is for someone else to claim it, or accidentally infringe on it.
Mistake #6: Failing to Plan for Growth
Most entrepreneurs focus on launching, but forget to plan for what comes next. Without scalable legal systems in place, growing businesses often run into operational or compliance issues.
How to avoid it:
Work with an attorney who understands the big picture. Planning for hiring, fundraising, partnerships, or expansion from day one can save you time, money, and restructuring headaches later.
Build Your Business the Right Way with a Legal Team That Gets It
Legal mistakes are usually easier to prevent than they are to fix. That’s why so many San Antonio entrepreneurs turn to Clausewitz Reyes for smart, strategic legal counsel.
Whether you’re forming a new company, protecting your intellectual property, or reviewing contracts, we help you move forward with clarity and confidence. We understand small businesses, and we know San Antonio.
Need a legal partner for your small business startup?
