The Top 3 Legal Mistakes Entrepreneurs Make and How to Avoid ThemMessy legal issues can derail a new business. It's best to keep it clean from the start.

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For newbie entrepreneurs, building a business can be a hectic period of trial and error. Part of the adventure is wading through daunting legal matters.

Jennifer Berrent, a partner at the New York office of legal firm WilmerHale, says the three most common mistakes 'treps make in the early stages are failing to adequately protect their intellectual property (IP), not formalizing the equity arrangements among founders and inaction or haste in choosing the right structure for their business.