Starting a business can be exciting, overwhelming, and a little scary—especially when it comes to the legal stuff. If you’ve ever thought, “Do I need to set up an LLC before I launch?” or “When should I trademark my business name?”, you’re not alone. So many women (especially moms coming from corporate careers) feel called to launch their own service-based businesses, but the legal side can feel like a whole other language.

That’s why I want to break it down for you—step-by-step and in simple words—so you can feel confident and get moving. You don’t need to be afraid of the legal stuff. You just need to know where to start.

Let’s talk about the three legal pillars every service-based business needs, according to Andrea Sager, a top trademark attorney and the founder of The Legalpreneur. Trust me, you’re gonna love how she simplifies everything.

Pillar 1: Set Up Your Business Entity

The first thing you need to do—before you even make a dollar—is decide how your business will be structured legally. Most people go with an LLC, and there’s a good reason for that.

LLC stands for Limited Liability Company. It’s a way to protect yourself (and your personal assets) in case your business runs into trouble. Without it, if something happens in your business—like a legal issue or debt—you could personally be held responsible. That means someone could come after your home, your car, your savings… yikes!

Andrea recommends setting up your LLC right away, not waiting until you’re making a certain amount of money. Why? Because anything can happen before you reach those big milestones, and you don’t want to be caught off guard.

A common question she gets is: “Should I be an LLC or an S Corp?” And here’s her simple answer: start with an LLC. Later, as your income grows, you can talk to a tax professional about switching your tax status to an S Corp (which just means your LLC starts filing taxes a certain way). But first? Just get the LLC. That’s your starting point.

Pillar 2: Get Your Contracts in Order

Next up—contracts. This is where many new business owners get stuck. You might think, “I’m just starting out, I don’t need anything official yet.” But here’s the truth: If money is changing hands, you need a contract. Period.

Contracts aren’t just legal documents—they’re protection and peace of mind. They spell out what you’re offering, what your client can expect, what happens if things go wrong, and how everyone gets paid. It sets expectations from the start.

Here are a few contracts you might need, depending on your business:

• Service agreement – For coaching, consulting, design, or any other service.
  
• Website terms of use and privacy policy – These should be in your site’s footer.
  
• Contractor agreements – If you hire a VA, copywriter, or designer.
  
• Collaboration or barter contracts – Even if no money is exchanged!
  

Yep, even barter deals need contracts! If you’re swapping services with someone (say, website design in exchange for copywriting), you still need it in writing. Why? Because misunderstandings happen—even with good intentions. A simple written agreement clears everything up before anything begins.

Oh, and if you’re taking on a podcast sponsor, you’ll want a contract for that too. It lays out what’s expected on both sides—how long the ad will run, what deliverables are included, payment details, and more.

Andrea’s team actually offers contract templates (over 100 of them!) that you can customize to your business. No need to pay a lawyer thousands upfront. Just plug in your info and go. Easy, right?

Pillar 3: Protect Your Intellectual Property (IP)

This one might sound super technical, but don’t worry—I’ll keep it simple.

Intellectual Property (IP) is basically the stuff you create that has value—your business name, logo, course content, photos, blog posts, podcasts, and more.

There are two main types to know:

1. Copyright = Your content (things like blog posts, videos, photos, podcast episodes)
   
2. Trademark = Your brand (business name, logo, slogan, product or service names)
   

Let’s break this down a bit.

With copyrights, you’re protected the moment you create something. If you write a blog post or take a photo, you automatically own the rights to it. No extra steps needed.

But with trademarks, you actually have to register them to be protected. If you want to legally own your business name or product name, you have to file an application and wait for it to be approved. And heads up—this process takes over a year right now. So the sooner you file, the better!

One big mistake business owners make is thinking they’re fine as long as no one else has the exact same name. But trademark law is a little more tricky than that.

Andrea explains it like this: You can be guilty of trademark infringement even if the name isn’t identical—just similar enough to confuse people. And on the flip side, two businesses can have the exact same name if they’re in totally different industries.

Confusing? Yep. That’s why learning about trademarks early is so important.

If you’re just starting out, don’t feel pressured to file your trademark right away. But do keep it in mind as a next step once your business has a little traction and you want to protect your brand.

But Wait… What About S Corps, Incs, and All That Stuff?

Let’s circle back for a minute. You may have seen influencers or accountants talking about S Corps, corporations (Inc.), and other business structures.

Here’s the simple truth: unless you have shareholders or a board of directors (which you likely don’t), an LLC is the way to go when you’re starting out.

Corporations have more rules, more fees, and more red tape. They’re great for big companies but not necessary for most solo or small business owners. Stick with the LLC—it protects you, and it’s easy to manage.

How Contracts Actually Protect You

We touched on contracts earlier, but let’s get a little deeper.

Contracts do more than protect your money—they protect your relationships. They spell out all the expectations upfront, so no one is left guessing. And they help make sure you get paid on time, every time.

One clause that’s especially important? The Intellectual Property clause.

Let’s say you hire someone to create a logo, website, or brand photos. Just because you paid for it doesn’t mean you own it. Crazy, right?

By default, the person who created it still owns it unless your contract says otherwise. So make sure your contracts include language that clearly says what you own and what they own.

This is where having a good template comes in handy. Andrea’s contracts cover all of this—so you don’t have to figure it out on your own.

When Should You Start Thinking About Trademarks?

Now, you might be wondering… When should I actually file a trademark?

Andrea says a good rule of thumb is this: once your business is growing, your brand is becoming more recognizable, and you’re building momentum, it’s time to start thinking seriously about protecting your name and assets.

Don’t wait until someone else uses your name—or worse, sends you a cease-and-desist letter. Like Andrea says, if you wait until you need a lawyer, you’ve waited too long.

Oof. That one hit, didn’t it?

What Should You Do Next?

If you’ve been freelancing here and there, helping friends and family, and you’re now ready to step out and take your business seriously—this is your sign. It’s time to set up your legal foundation.

Here’s your action plan:

1. Set up your LLC – Do this first to protect yourself.
   
2. Get the right contracts – Especially your service agreement and website policies.
   
3. Understand your IP – Know what you own, and plan to trademark your brand when the time is right.
   
4. Download a legal checklist – Andrea offers a free one that breaks everything down.
   
5. Join a legal membership – If you want support, Andrea’s Legalpreneur Membership includes LLC filing, contract templates, a DIY trademark course, and more—all in one place.
   

Final Thoughts

You don’t have to figure this out on your own.

You also don’t need to spend thousands of dollars or get overwhelmed with legal jargon. All you need is a clear, simple path—and someone who can walk you through it.

Whether you’re coaching, consulting, designing, or teaching, your work matters. And it deserves to be protected.

So go ahead. Take the next step. Build your legal foundation now, and future-you will be so glad you did.