Don't Launch a Side Hustle Without This Critical Legal Precaution, Advises Attorney: It's Essential

If you're grappling with increasing expenses, eager to earn from your hobbies, or simply seeking additional financial flexibility, venturing into a side business might be on your agenda.

You're certainly not alone. Over 25% of American adults are currently juggling a side job alongside their primary employment.

However, once you begin exploring self-employment, it’s crucial to ensure your intellectual property is legally safeguarded.

Darlene Harris, the lead attorney at Power In Protection based in Charlotte, North Carolina, states, "Having a trademark is a fundamental requirement."

Even if your venture is initially earning just a few hundred dollars, neglecting essential steps to protect your brand, work, and personal accountability could lead to potential issues, she warns.

"It's vital for anyone offering products or services, in any entrepreneurial capacity, to have this protection," she insists.

The Importance of Brand Protection

In Harris’s view, securing a trademark is akin to possessing the deed to your property. Without one, your business name, logo, and tagline are vulnerable to unauthorized use.

"Imagine if someone else claims ownership of your home; having the deed quickly resolves disputes," Harris explains. "Conversely, without a deed, you face complicated legal battles over ownership."

Consequently, you might find yourself embroiled in these legal conflicts, Harris continues.

"If you use a business name that too closely resembles someone else’s, expect legal action," she warns. "Even if your earnings are modest, they might demand a share."

Consulting a Lawyer is Beneficial

One common oversight among aspiring entrepreneurs is ignoring their venture's future trajectory, Harris notes. Although your creative or crafting business may appear trivial now, planning for future growth and legal needs is essential.

"You must adopt a broader perspective," Harris advises. "Consider the expansion of your business and the protection you’ll require as it evolves."

You wouldn’t want a profitable and flourishing business undermined by someone legally claiming a portion of your revenue, she adds.

Therefore, consulting with a lawyer to devise a robust intellectual property strategy is prudent, Harris suggests. It's more than a few inexpensive documents you might find online.

Harris advises caution if a firm charges below $1,500 for preparing your legal documentation and strategy development.

Additional legal assistance should include copyright registration for creations like photos, music, or writings, and forming a legal business entity to distinguish personal and business assets, offering financial protection against lawsuits.

"Many individuals downplay the significance of their side project," says Harris. "But if they’re building a brand and identity, owning it is crucial."