Question: As a founder, what risks or personal liabilities should I be aware of?
Physical and Emotional Commitment
"Some people like the idea of running a business, others fully commit to it. The latter will be the successful ones, but the level of mental, emotional and physical commitment shouldn't be underestimated. Also, the temptation at the start is to sign everything and deal with it later. Be careful of what personal liabilities are excepted as they can come back to bite even much later on."
The Possibility of Lawsuits
"You do have to live on if the company fails, gets sued or the tax man investigates. Be sure you are insulated, informed and insured. Don't leave accounting or contracts to the last minute or to those who don't know how to do them. Be sure that as much as possible is in the company's name, not your own. "
Potential Legal Disasters
"We all learned that reading something before you sign it is best-practice in Adult Life 101. But how often do you really do that? Spending a little on attorney review now can mitigate the risk of a legal disaster down the line. Attorneys can catch the things that an untrained eye glazes over — like an indemnification clause that could end up with you on the hook for another entity's legal fees."
"You need to be aware of the risk of litigation against your company ruining you if you don't keep corporate and personal assets separate — and I do mean completely separate. Particularly where startups are concerned, businesses are often seen as the alter ego of their founders. Facebook and Mark Zuckerberg are synonymous. That can easily come back to bite you if you aren't careful."