Structuring

For-profit or not-for-profit? Incorporated or unincorporated? Public or private? Perhaps a hybrid? There are a number of different ways to structure a social enterprise all with their own benefits and challenges. It’s also important to understand that there are various immediate and future implications in choosing the right structure for your social enterprise. By having a lawyer who understands the vastness of social enterprise law and understands the different options available can be immensely helpful in developing a sustainable model for your social enterprise.

Regulatory compliance

Depending on how you decide to structure your social enterprise, a common social enterprise law consideration is to understand the compliance obligations you may fall within. These can be reporting obligations you hold to the Australian Charities and Not-for-profits Commission or the Australian Securities and Investments Commission. You may also have legislative obligations under the Privacy Act 1988 (Cth) and the Australian Consumer Law. Startup Lawyers Brisbane can help you navigate these often complex compliance issues. Pushing such matters aside can result in your business facing penalties for late or non-compliance and give rise to reputational risks which may undermine the very purpose you set out to achieve.  

Managing relationships

We all know that “good fences make for good neighbours” but did you know “good contracts make for good business relationships”? Having in place written contracts clearly outlining rights and responsibilities can help maintain strong and fruitful relationships with your co-founders, employees, volunteers, third-party service providers and other stakeholders. By having lawyers experienced with social enterprise law who understands the different needs in different relationships, you will have the right tools to cater to the individual needs of your business partnerships.

Protecting your intellectual property (IP)

No matter what type of social enterprise you operate, your IP is likely very valuable to you and you want to protect it. Whether it be your business name and logo, the content on your website, the designs of your products or the computer code behind your software, all these things make up IP and require specific legal tools to protect them. Startup Lawyers Brisbane have a thorough understanding of IP laws and how best you can protect yours in the most cost-effective way under social enterprise law.

Raising funds

Crowd-funding, equity or debt financing and donations are just some of the ways social enterprises seek funding to startup or further their causes. All these options come with their own unique legal requirements and obligations. Not only this, you may find that without structuring your business appropriately, you are not eligible for certain funding types. Consulting a lawyer who understand social enterprise law before seeking different funding options can help in preparing correctly for the option as well as in understanding what obligations you are entering into and the risks involved.

Managing customers

Last but certainly not least, if you’re running a social enterprise then you have customers who are paying for your goods or services. Whether you’re selling consumer products on a website or providing professional services to companies, having clear agreements in place with your customers provide clarity with respect to the obligations of the parties and also help minimise risks and mitigate losses. Particularly for social enterprises who are advertising their social purpose, customers may have certain expectations for you evidencing or promising this. Startup Lawyers Brisbane understand social enterprise law and also the multitude of ways in which they operate means we can have agreements drafted which clearly articulate your intentions.