Starting and running a business successfully requires more than just a great idea and a solid business plan; it also requires a strong legal foundation. Without key legal documents in place, even the most promising business can face unnecessary risks, disputes, or even shutdowns. If, you are starting up or merely tidying up, this blog will help businesses build a strong legal backbone.
Meet Emma
Emma has recently quit her job and is ready for the next big step – starting her own recruitment business in Adelaide. Emma wants to make sure that she has all her legal bases covered to avoid any complications later down the line.
Here’s what she (and every business owner) needs to achieve this goal:
1. Business structure documentation
Having the correct business structure documentation in place is essential for any business, as it formally establishes the entity. As a business owner, you must be aware of and comply with the individual requirements for your business. These can vary between legal structures such as sole trader, partnership, company, and trust.
After reading our article titled ‘I’m a ‘start-up’. How should I set up my new business?’ Emma has decided to incorporate her business. Setting up a company in Australia requires a lot of paperwork, so she will need to implement a range of documents, including a Certificate of Registration, Company Constitution, Australian Business Number (ABN), and Tax File Number (TFN). She will also need to obtain a Directors Identification Number.
Identifying and preparing the right documents can be confusing. Contact us today if you want to simplify this process.
2. Business licences and permits
Every business owner must ensure that they have all the necessary licences and permits before commencing operations. Licences and permits will apply at local, state and federal levels, and will vary from business to business depending on their unique features, such as the nature of the business, location and activities. Securing the right licenses and permits is critical to avoid fines, legal issues, or disruptions to your business.
For Emma, securing an employment agent licence from SafeWork SA will be critical to the successful establishment of her recruitment business.
3. Lease agreements
Whether you’re starting up a retail store, opening an office, or moving into a warehouse, one document is key: the lease agreement. The lease agreement should clearly outline the terms of occupancy, as well as the rights and responsibilities of both parties to prevent disputes, unexpected costs, and instability.
Emma is looking to rent an office space in which to carry out her business. It is important that when Emma selects a space, she ensures that a lease agreement in place. It is equally important that she fully understands her rights and obligations under the lease to avoid any complications.
We can review your lease and assist you in clearly understanding your rights and obligations. Call us on 1300 654 590 or email us.
4. Employment contracts
Employment contracts are essential legal documents for business owners in protecting their business and reducing the risk of disputes. In addition to having these contracts in place, it’s equally important that owners fully understand their obligations as an employer under Modern Awards, including pay, leave and superannuation entitlements.
As the owner of a recruitment business, Emma will need to carefully consider which types of workers will be most suitable for her team, including employees, casual workers, independent contractors or commission-based employees and make sure she has the right agreements in place. Employment Agreements form part of a suite of workplace related documents, including policies and codes of conduct, that will help Emma deal with the challenges of being an employer!
We can help you determine and execute the employment contracts that will best set up your business for success.
5. Intellectual property protection
Intellectual property (IP) protection is a vital but often overlooked aspect of running a business. Whether it’s a brand name, logo, product design, or proprietary process, your IP will represent some of your most valuable business assets, and without legal protections in place, these assets are vulnerable.
To protect her IP from the onset, Emma should apply for trademarks, copyrights, patents, and confidentiality agreements. These steps will minimise Emma’s risk of disputes and costly litigation down the track. She must also ensure that if her employees ‘walk out the door’ they don’t take ‘IP’ with them.
IP protection isn’t a one size fits all solution. Call us on 1300 654 590 or email us to learn how we can help you identify and implement the right documents tailored to your business’ specific needs.
6. Customer and supplier agreements
Supplier and customer agreements are fundamental to the effective and lawful operations of any business. These agreements set out each party’s rights, responsibilities, and expectations which will help avoid any misunderstandings and reduce the risk of disputes. Not least, they will assist you to get paid.
To safeguard her recruitment business, Emma should implement well-drafted customer agreements with companies engaging her business to source talent. These agreements should address key elements the business’s services such as the scope of services, fee structure and confidentiality.
7. Insurance policies
Insurance policies are essential for every business owner, as they play a crucial role in safeguarding the long-term success and sustainability of businesses. Often, insurance policies are not just a safety net for businesses, they are also a legal requirement. The legal insurance requirements will largely depend on the business.
For Emma’s recruitment agency, the core insurance policies in place should include professional indemnity insurance, public liability insurance, workers’ compensation insurance, and cyber insurance. Don’t forget director’s insurance – in Australia there are over 700 laws that make directors personally liable for an act, omission or obligation of the company.
If you want to avoid jeopardising your business’s financial stability due to inadequate insurance, contact us today.
8. Business succession plan
A business succession plan is a collection of documents designed to ensure the continuity and long-term stability of a business. A well-structured succession plan outlines the process for transferring ownership and leadership responsibilities, minimising uncertainty and safeguarding the business’s operations, employees, and value. It also plays a key role in preventing disputes among stakeholders.
To best safeguard her recruitment business, Emma should establish a comprehensive succession plan that includes a Will, a buy-sell agreement, and a power of attorney.
We can help you put in place a comprehensive business succession plan to leave a legacy, not a mess.
9. Record keeping documents
Having record keeping documents in place is essential for running a successful and legally compliant business. Maintaining accurate and organised records is crucial, not only for day-to-day operations, but also for meeting tax, employment, and regulatory obligations.
Emma will need to ensure that she retains business records, such as invoices, receipts, employee records, and financial statements, for at least five years to comply with the Australian Taxation Office’s requirements. She must also be aware of the privacy laws surrounding the keeping of personal information she stores about her employees and clients.
How we can help
Whether you’re starting up a business like Emma, or are looking to strengthen your existing business, ensuring you have these nine sets of documents now will save time, money, and stress in the future.
To set your business up for long-term success, call us on 1300 654 590 or email us today.
The information contained in this post is current at the date of editing – 17 September 2025.
