The Founder Legal Checklist — Legal Basics Every Business Owner Should Have Sorted

Most business owners focus on getting clients, generating revenue and building the product or service. Legal basics get pushed down the list — until something goes wrong. This checklist covers the 10 legal foundations every UK business should have in place.

1. Terms and conditions

Clear, properly drafted T&Cs are the foundation of every business relationship with clients. They set out what you provide, when you get paid, what your liability is, and what happens if things go wrong. Without them, the terms of your contracts are unclear — often in the other party's favour. Get them in place before you have a dispute, not after.

2. Privacy policy and GDPR compliance

If you collect personal data — including names, email addresses or payment details — you need a privacy policy that explains how you use it. This is a legal requirement under the UK GDPR, not optional. Failure to have one, or having one that is materially inaccurate, creates regulatory risk. Your website should have a compliant privacy policy before it goes live.

3. Employment contracts for every employee

From day one. The law requires a written statement of employment particulars to be provided at the start of employment. A proper employment contract goes further — including IP assignment, confidentiality, restrictive covenants and notice periods. Get this right from the start: adding restrictive covenants later is difficult without fresh consideration.

4. Shareholder or partnership agreement

If more than one person owns the business, a shareholder agreement or partnership agreement is essential. It covers who owns what, how decisions are made, what happens if a founder wants to leave, and how disputes between owners are resolved. Many business partnerships run well for years without one — until they do not. By then, it is too late.

5. Intellectual property ownership

Who owns the brand, the code, the content, the product design? Intellectual property ownership is often unclear in early-stage businesses — particularly when contractors, freelancers or co-founders have been involved in creating assets. Employment contracts should assign IP created in the course of employment to the business. Contractor agreements need explicit IP assignment clauses — work commissioned from a contractor does not automatically belong to the business that paid for it.

6. Client contracts or service agreements

A signed client contract — not just a quote or email chain — is essential for any significant piece of work. It confirms scope, price, timescales, payment terms and what happens if the project changes. Without one, scope creep and non-payment disputes are much harder to resolve.

7. Supplier terms reviewed before signing

Businesses sign supplier contracts regularly — for software, services, premises and equipment — without reviewing them. Supplier standard terms are drafted to protect the supplier, not you. Auto-renewal clauses, wide indemnities and liability limitations are common. Review significant supplier contracts before signing, not after.

8. NDAs when sharing confidential information

Before sharing business plans, financial information, product details or any sensitive information with a third party, have an NDA in place. This is particularly important in the early stages when discussing a potential partnership, investment or acquisition. An NDA creates a legal obligation of confidentiality — without one, you have only trust.

9. Website terms of use

If you have a website that people use or transact through, you need website terms of use as well as a privacy policy. They limit your liability for website content, deal with acceptable use, set out intellectual property rights and govern the relationship with website users.

10. A process for reviewing contracts before signing

Not a document, but a habit. Every significant commercial agreement should be reviewed by someone with legal knowledge before it is signed. This does not have to be expensive — a fixed-fee contract review gives you a clear picture of the risks and negotiation points, for a predictable cost, without an hourly billing uncertainty.

Buzz Legal's Legal Foundations subscription covers most of this checklist from £249/month, including a legal health check, core business documents, template library and contract review. Or if you prefer to start with specific pieces, see our fixed-fee services.