Legal Health Check for Businesses

Question	Yes	No
Do you or the controlling entity of your Business have the appropriate licenses or government consent required by law to operate the business?
You or the controlling entity of the Business need to have the appropriate licenses or government consent required by law to operate the Business before doing this test.
Is your Business established and operating in Australia?
This test is only suitable for businesses established and operating in Australia.

Number of Employees:

Annual Gross Turnover:

Number of years your Business has been operating:

Area of business:

Question	Yes	No
BUSINESS STRUCTURE
Is your Business owned by a partnership?
Is the partnership a husband and wife?
Is there a partnership deed in place?
Is your Business owned by a limited liability structure?
Is your Business owned by a Pty Ltd or Ltd company?
Do you have a shareholders agreement in place?
Does your Business have Director's Indemnities in place?
Is your Business owned by a unit trust?
Is the trustee the unit trust a company?
Do you have a unitholders agreement in place?
Do you have a documented succession plan for your Business?
PREMISES
Does your Business operate from premises?
Does your Business operate from home?
Does your Business operate from a property owned by the Business or a related entity?
Does your Business have a signed lease for the premises it operates from?

Question	Yes	No
INTELLECTUAL PROPERTY
Is the intellectual property of your Business protected by way of:
Registered business name
Registered trademark
Registered logos







INSURANCE
Does your Business have the following types of general insurance:
Fire
Theft
Workers Compensation
Public Liability Insurance
Product Liablity Insurance
Business Continuity Insurance
Keyman Insurance
Disaster Recovery Insurance
Does your Business engage in the practice of providing professional advice?
Do you have professional negligence insurance?
Are you in the business of importing goods?
Is 25% or more of the annual turnover of the Business derived from the sale of imported goods?
Does your Business have import insurance?
Does your Business have import insurance?
Are you in the business of exporting goods?
Is 25% or more of the annual turnover of the Business derived from the sale of exported goods?
Does your Business have export insurance?
Does your Business have export insurance?

Question	Yes	No
CONFIDENTIALITY
When dealing with third parties, have you (when appropriate) arranged for them to sign confidentiality agreements to keep the intellectual property of your Business confidential?
EMPLOYMENT
Have all the employees of your Business signed an employment agreement?
Does your employment agreement have a trade restraint clause?
Is your Business owned by a company?
Do you have written or documented employment policies?
CONTRACTORS
Do you have contractor agreements in place when dealing with contractors?
Do you consider your Business to be an independent contractor?
Does your Business operate with only a sole individual?
Does 80% or more of the earnings in one tax year come from one client?
Does 80% or more of the earnings in one tax year come from one or more related clients?

Question	Yes	No
TERMS OF TRADE
Does your Business import and export goods?
Do you have a clear binding contract in place when importing and exporting goods?
Does your contract deal with the issue of the passing of ownership of the goods?
Does your Business have standard terms of trade or a retainer agreement that it uses with it’s clients?
Does it contain a personal guarantee?
Does your Business sell goods on credit or create a personal security interest?
Do you have a system for registering PPSA?
DEBTOR MANAGEMENT
Does your Business have a debtor management system?