Legal Health Test

How Open Is Your Business To Legal Risk?

The Legal Health Test helps you evaluate your startup's legal preparedness and compliance across key areas, including business structure, contracts, intellectual property, employment law, tax compliance, risk management, and dispute resolution. The test is designed to help you identify potential vulnerabilities in your business and take proactive steps to minimize your legal risk.

Take The Test

Fill the form below to start the Legal Health Test. Make sure to answer as honestly as possible to get the most accurate result.

Name

Business Name

Phone Number

Section 1

Business Formation and Structure

This section assesses whether your business has the correct legal structure as well as all necessary registration documents.

What is the legal structure of your business?

Sole Proprietorship

Partnership

Limited Liability Company (LLC)

Corporation

The business does not yet have an official legal structure.

None

Are the business structure documents (e.g., incorporation documents, partnership agreements) filed and compliant?

Yes, all documents are in place

Some documents are missing

None

1 out of 10

Section 2:

Contracts and Agreements

This section assesses whether all major contracts are in place, regularly reviewed, and enforceable.

Does the business have legally sound contracts in place with suppliers, customers, and employees?

Yes, for all parties

Yes, for some parties

None

How often are your contracts reviewed by a legal professional?

Regularly (monthly or yearly)

Sometimes, only for major agreements

Never

None

2 out of 10

Section 3:

Intellectual Property Protection

This section assesses whether the business has comprehensive IP protection with active enforcement, or it's exposed to theft or infringement.

Does the business have trademarks, copyrights, or patents filed for key intellectual property (IP)?

Yes, we have trademarks, copyrights, and patents

We have some protections, but not all

No registered protections in place

None

Do you have a comprehensive Intellectual Property Policy in place?

Yes, I have a comprehensive policy

I have a policy, but not comprehensive

No I do not / I don't know

None

3 out of 10

Section 4:

Employment Law Compliance

This section assesses whether the business is fully compliant with employment laws, including contracts and policies.

Are all your employees on legal contracts that comply with labor laws?

Yes we have for all employees

We only have for some employees

Not at all

None

Do you have Employment Policies in place that cover areas like fair labor practices, health, and safety?

Yes, all policy documents are in place

Yes, but not all areas of employment law are covered

No policy at all

None

4 out of 10

Section 5:

Finance & Tax Compliance

This section assesses whether the business is fully compliant with tax obligations, including strategic tax planning.

Is the business properly registered for income tax, VAT, and payroll taxes with the local tax authority?

Yes, we have registered for all obligations

We are compliant, but not 100%

Not at all

None

Does the business maintain proper accounting records for accurate and timely tax filing?

Yes our accounting records are accurate

We have records but not properly organised

No records at all

None

5 out of 10

Section 6:

Data Privacy and Security

This section assesses whether the business has strong data protection policies in place with regular audits.

Are you registered with your National Data Protection Agency / Authority?

Yes we are registered

No we are not

None

Do you have a comprehensive Data Protection Policy in place in your business?

Yes we have a comprehensive policy

We have a policy, but it doesn't cover all areas

Not at all

None

6 out of 10

Section 7:

Risk Management & Insurance

This section assesses the company's strategy for managing and averting risk, through proper insurance coverage.

Do you have a comprehensive documented Risk Management Strategy / Policy in place?

Yes we do

We have a strategy, but it's not fully documented

Not at all

None

Do you have any business insurance coverage (e.g., liability, professional indemnity)?

Yes we do, for all areas of risk

Some coverage

No coverage at all

None

7 out of 10

Section 8:

Industry-Specific Regulatory Compliance

This section assesses the business is compliant with all relevant industry-specific regulations.

Is your business aware of and compliant with all industry-specific regulations (e.g., environmental, financial, or health regulations)?

Yes we are aware and are fully compliant

We have some level of compliance, but not 100%

Not at all / Not sure

None

How often are compliance measures reviewed, and audits conducted?

Regularly (at least monthly or yearly)

Once in a while

Never

None

8 out of 10

Section 9:

Dispute Resolution Strategy

This section assesses whether the business has well-established dispute resolution strategies in place.

Do you have documented strategies / policies in place to manage disputes (e.g., mediation, arbitration, ADR)?

Yes we do

Not at all

None

How often do you engage legal counsel when managing disputes?

Yes we always engage legal counsel

We only engage legal counsel when it's absolutely critical

We never engage legal counsel in disputes.

None

9 out of 10

Section 10:

Overall Legal Strategy & Review

This section assesses whether the business has regular legal reviews and proactive legal strategy.

Do you have either an in-house or outsourced legal professional/team managing your overall legal strategy/compliance?

Yes we do

No we do not

None

How often do you conduct legal health / compliance checks or audits with legal professionals?

Regularly (at least once a year or monthly)

Once in a while

Not at all

None

Have you implemented systems for monitoring early potential legal risk factors (e.g. potential disputes, compliance loopholes, etc)?

Yes, we monitor all the factors in real time.

We carry out some monitoring periodically.

We have not implemented any monitoring systems at all.

None

10 out of 10

Time's up

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Legal Health Test

How Open Is Your Business To Legal Risk?

Business Formation and Structure

Contracts and Agreements

Intellectual Property Protection

Employment Law Compliance

Finance & Tax Compliance

Data Privacy and Security

Risk Management & Insurance

Industry-Specific Regulatory Compliance

Dispute Resolution Strategy

Overall Legal Strategy & Review

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