Vena Verga-Danemar Of ‘Legally She Can LLC’ On The Top 5 Mistakes Businesses Make Without Legal Counsel
An Interview With Chad Silverstein
…Failing to Separate Personal and Business Assets: The fifth mistake is not maintaining a clear separation between the business and the owner. This includes signing business contracts under the owner’s name instead of the business’s name, mingling personal and business finances, or using the business’s credit card for personal purchases. Blurring the lines between the business and personal assets is not only a tax issue but also affects the protections that certain business structures, like limited liability companies, provide. When the separation between the business and the owner is unclear, the protection afforded by the business structure can be compromised…
In today’s fast-paced business world, the complexity of legal matters can often be overlooked, leading to significant repercussions for businesses of all sizes. From startup ventures to established corporations, the absence of legal guidance can result in critical errors that affect growth, operations, and sustainability. These mistakes range from issues with contracts and intellectual property to compliance and employment law, each carrying the potential for financial loss and reputational damage. I had the pleasure of interviewing Vena Verga-Danemar, J.D., LL.M (Tilburg), LL.M (UNIGE/IHEID/GA)
Vena is a lawyer turned legal and business strategist and the founder of Legally She Can. Her passion is supporting women coaches, experts, and service-based business owners, guiding them through the complexities of online entrepreneurship to help them attract clients worldwide while avoiding legal pitfalls. She earned her legal degrees in the Philippines, the Netherlands, and Switzerland, and served as legal counsel for multinational companies for over a decade before pivoting to run her own online business.
Thank you for joining us. To start, could you share your “origin story” with our readers? How did you begin your career? What challenges did you face in the early days? How did you overcome them?
I earned my Juris Doctor degree in the Philippines, where obtaining a law degree entails four years of university studies followed by another four years of actual law studies. Consequently, unlike my colleagues in other countries, I was already in my late 20s when I became a lawyer. I initially focused on litigating civil and commercial cases.
By that time, many of my peers were already established in their careers and starting families. As a new hire, my salary was modest, and my workload exceeded that of other associates. There was also the pressure to prove that the partners of the firm had not made a mistake in hiring me over the hundreds of others vying for the same position. The first years as a lawyer were perhaps the toughest. My social life was severely limited since I often worked more than 60 hours per week and was on call during weekends and holidays.
However, as with most careers, the beginning is almost always the most challenging. Persistence is key. I gradually advanced through the ranks and was able to establish my own firm after a few years. I always reflect on my early years as a lawyer as lessons in humility, perseverance, and resilience.
Is there a particular book that made a significant impact on you? Can you share a story or explain why it resonated with you so much?
Mark Manson’s The Subtle Art of Not Giving a Fck profoundly impacted my life. For those unfamiliar with the book, Manson underscores the importance of disregarding unnecessary distractions and being selective about what influences you. I read this book at a pivotal moment in my legal career, a time filled with doubts about which path to choose.
To provide some background, a year before I discovered this book, I took a self-imposed sabbatical from my legal practice. I flew to the Netherlands to pursue an advanced degree in law. This break came after years of litigating and managing my own law firm, during which the demands of my profession took a significant toll on both my physical and mental health. With a heavy caseload and a team relying on me, it became impossible to prioritize my well-being, and personally, I was not happy.
So, I seized the opportunity to enroll in a Master’s program in law in the Netherlands and stepped back from my practice. This year allowed me to refocus on myself. However, as the academic year drew to a close, I found myself at a crossroads. I was torn between returning to the Philippines, where my role was as familiar as the back of my hand, and establishing myself in a foreign country, where I likely wouldn’t hold the same prestige, status, or authority. I wondered what my family and colleagues would think, fearing they might see my decision as abandoning a stable career for an uncertain one.
Manson’s book taught me to be more selective about where I focus my attention and energy. It encouraged me to concentrate on what truly matters instead of being swayed by the external opinions of others. Eventually, an opportunity to move to Switzerland simplified my decision. However, whenever I feel a twinge of jealousy towards my colleagues in the Philippines who have achieved high positions in government and the courts, I revisit Manson’s book. It reminds me that I chose a simpler, yet more purposeful, life.
Do you have a favorite “Life Lesson Quote”? Do you have a story about how that was relevant in your life or your work?
I rely on a very simple mantra: progress, not perfection. As a young lawyer, I was constantly in pursuit of perfection. I believed I had to win every case and negotiate the best outcomes for my clients, thinking that mistakes and failures were not an option. This mindset, of course, was unrealistic since, in the legal profession, there are always winners and losers.
This pursuit of perfection also influenced how I ran my business when I pivoted years ago. I wanted immediate clients, visibility on every social media platform, and to maintain a blog and a podcast. I aimed to be omnipresent, as the term is used in business.
However, I’ve realized that the pursuit of perfection comes at a cost to my physical and mental health, as well as the time I could spend on myself and with my loved ones. It can also be a hindrance. For instance, when I created a legal program for my clients, my desire for it to be perfect delayed its launch by months, causing me to miss out on numerous opportunities and months of potential income.
I am still learning to let go of this habit, but currently, I focus on making progress and learning from my mistakes. After all, as humans, we make errors, we recover, and we pivot. That’s simply how life operates. It is through this cycle of failure and learning that we truly progress.
How have you used your success to make the world a better place?
I lead what I call a purpose-driven business. My clients and students come from varied backgrounds; they include mothers who have stepped away from traditional 9–5 jobs to dedicate time to their families, retirees keen to remain active, middle-aged women exploring new career avenues, experts and freelancers looking to reach a global market, and trailing spouses who are determined to establish their own paths.
Many initially viewed legal matters with apprehension, doubting their capability to grasp or manage such complexities, much less to run a thriving business that supports their aspirations. I guide them not only in their business legalities but also help them cultivate self-reliance and confidence, empowering them to become true CEOs of their businesses. The sense of fulfillment they experience from starting and expanding their businesses, despite numerous challenges, is profound.
I firmly believe that empowering women to become business owners and supporting them in their endeavors achieves just that. It doesn’t just transform lives; it also nurtures a community of impactful, innovative contributors to society.
Ok, let’s now turn to the central part of our interview. What is the most common legal mistake you see businesses make due to the lack of proper legal counsel, and what are its potential consequences?
One of the most common legal mistakes business owners make is using Google or AI platforms like ChatGPT to handle their business legalities, thinking these tools can replace professional legal counsel.
The application of law and legal rules is nuanced and often not as straightforward as non-legal practitioners might think. When you search for your business legalities online, you are bombarded with a plethora of information that may not be relevant to your specific situation. Often, the answers provided by Google or AI come from non-lawyers rather than legitimate sources.
Instead of providing clarity, this often leads to increased overwhelm and confusion for the business owner. It’s pretty much like googling your own symptoms, where your research often leads to diagnoses of cancer or some form of untreatable disease.
The problem is that legal errors typically come to light when the business owner faces a lawsuit or penalties. Not only that, but these mistakes can also harm both the reputation of the business and its owner.
Lawyers are not magicians, and once these mistakes occur, they are often difficult to rectify.
Can you share an example where early legal intervention could have significantly altered the outcome of a business dispute or challenge?
I handled a case against a nutritional coach who was sued after giving advice that led to her client’s hospitalization. One mistake the coach made was overstepping her scope of practice. This could have been easily avoided had she received legal advice on what she can and cannot do as a nutritional coach who is not a medical practitioner.
Her contracts were also inconsistent. She lived in a different country than her client, and although her contract stated that cases could be brought in her location, the inconsistencies allowed the injured client to sue in their home country instead. This forced the foreign coach to face litigation abroad. This could have been easily prevented if the coach had used a lawyer-drafted contract instead of trying to formulate one based on a template provided by her training federation.
How do changes in digital technology and online business practices complicate legal issues for businesses without dedicated legal advice?
Many business owners rely on digital tools like Google or AI platforms such as ChatGPT for legal assistance. While these tools provide accessible information, they often lead to the use of defective contracts or create legal misunderstandings that could easily have been prevented with assistance from a legal practitioner.
Business owners may not realize that while the output from these AI platforms might sound authoritative or legal, it often contains gaps and inconsistencies, which exacerbates situations when legal issues arise. For example, without a proper understanding of their legal rights and obligations, business owners are forced to issue refunds even when they have fulfilled their service obligations, wasting both time and resources.
The adage “you don’t know what you don’t know” is particularly relevant here. Digital technology helps foster misleading confidence in easily accessible information, leading business owners to believe they understand all necessary legalities when, in reality, they may not. This gap in knowledge and the illusion of understanding often leads to significant legal challenges and financial losses for businesses.
In your experience, how does the absence of legal counsel impact a business’s approach to contracts and negotiations, and what advice would you give to mitigate these risks?
Many business owners underestimate the importance of contracts, viewing them merely as paperwork to document Contracts are not just reflections of agreements; they should also act as a map for navigating potential disputes if the relationship sours.
I frequently encounter business owners who attempt to draft their own contracts, aiming to keep them as brief as possible. They mistakenly believe that lengthy contracts deter clients. But in reality, it is often problematic clients who hesitate to sign comprehensive contracts because they recognize the constraints these documents impose. Conversely, well-informed clients view lawyer-drafted contracts as a sign of professionalism.
The absence of legal counsel often leads to uncertainty for business owners, especially when disputes arise. They struggle to enforce their contracts or may not even know if their agreements address the specific legal issues they face. As a result, instead of relying on their contracts to guide them on how to resolve issues, business owners often panic and seek external solutions.
To mitigate these risks, I recommend a three-pronged approach: First, ensure that all contracts and agreements are professionally drafted by a lawyer, or at least based on lawyer-drafted templates tailored specifically for their industry. Second, business owners must fully understand their contracts, particularly which provisions to invoke during legal disputes. Third, it’s crucial that their legal frameworks, such as contracts, align with their business processes, like onboarding procedures. Misalignment between business practices and legal documents frequently leads to legal complications.
What legal pitfalls do new businesses often overlook during their initial setup and growth phases, and how can they proactively address these issues?
The first major pitfall that new businesses face is thinking that compliance is only for big and established companies. Their legal concerns often center on registration without realizing that more is expected of them the moment they start their business. For example, business owners publish websites without the proper legal policies. Often, businesses only realize their mistake when they face penalties. The solution is to seek advice from legal guidance from a practitioner with comprehensive experience not only in dealing with local businesses but also with cross-border and online businesses.
The second legal pitfall involves the use of business names, marks, or taglines without prior clearance. In their initial excitement, business owners often select these elements haphazardly. It is only as the business grows that the idea of trademarking arises. Many are surprised to find that the names or taglines they have chosen are not protectable under trademark law. The solution is to conduct a thorough knockout search for the marks early in the business planning process.
During their growth phases, businesses tend to forget the need to update their policies and contracts. These legal documents are not static; contrary to the poor advice some business owners receive, contracts and policies are not a “draft once and forget” matter. They should evolve alongside the business and reflect current laws. To proactively address these issues, business owners should include a strategy for obtaining legal updates in their overall business planning.
Here is our main question. Could you list and briefly explain “Top 5 Mistakes Businesses Make Without Legal Counsel” based on your experiences and insights? If you can, please share a story or example for each.
1 . Ignoring International and Foreign Laws: In today’s interconnected world, many businesses operate not just across state lines but also internationally, utilizing platforms like social media and having websites that are accessible worldwide. This global reach necessitates adherence to a complex web of laws from various jurisdictions.
Simply understanding local laws is no longer sufficient; businesses must also comply with international regulations that might affect their operations. This is particularly crucial in areas such as data protection, consumer rights, and intellectual property.
If I were paid every time a business owner insisted they are not covered by the EU’s GDPR simply because they are located in the US, I’d be rich. This lack of understanding of the interplay of international commercial laws often leaves business owners susceptible to risks and penalties.
2 . Relying on Google or AI Platforms for Legal Advice: The second mistake business owners make is turning to Google or AI platforms like ChatGPT for legal advice. These platforms may sound authoritative, but often all they blurt out are not.
I’ve had several clients who ran into trouble because they relied on legal information from ChatGPT. The issue with these platforms is that they depend on the user’s input. If you don’t know the right questions to ask, you will never get the correct answers. For example, a US-based company selling digital courses to jurisdictions where electronically supplied products like digital courses are covered by VAT got the surprise of their life when they found out that they should have registered for VAT from their first sale. Unfortunately, ChatGPT had told them they were exempt.
3 . Using Fill-in-the-Blank Legal Document Services: The third mistake is relying on fill-in-the-blank or legal document services. Although their templates might seem more reliable than those generated by AI platforms, they tend to be generic, leading to inconsistencies and gaps in contracts and agreements. Users of these auto-generated programs often receive assurances that the contracts and templates apply universally when they do not. Contracts and policies should always reflect the specific processes and circumstances of the individual business, which these services frequently fail to accommodate. For example, a product-based business selling purely online will have different terms than one operating a brick-and-mortar store. Unfortunately, these document services often fail to delineate the difference.
Additionally, using these services can create a false sense of security among users, who may believe that their legal documents are comprehensive and robust when, in fact, key elements may be missing or inappropriate for their specific needs. Business owners might initially save money because these services offer templates at a lower cost, but the potential liabilities created by these generic contracts can end up costing them thousands.
4 . Neglecting Intellectual Property Laws: The fourth mistake is not taking intellectual property laws seriously. This often manifests as copying contracts and policies from other businesses, or using photos or music from the internet for commercial purposes.
One example is business owners on social media platforms using copyrighted songs, images, and videos, then claiming “no copyright infringement intended,” thinking that these disclaimers are enough to avoid liability. Not so. In fact, these disclaimers prove that the business owner is aware that the media they used is owned by another entity and, despite this knowledge, they infringed on the owner’s copyright by using the media for business purposes.
5 . Failing to Separate Personal and Business Assets: The fifth mistake is not maintaining a clear separation between the business and the owner. This includes signing business contracts under the owner’s name instead of the business’s name, mingling personal and business finances, or using the business’s credit card for personal purchases.
Blurring the lines between the business and personal assets is not only a tax issue but also affects the protections that certain business structures, like limited liability companies, provide. When the separation between the business and the owner is unclear, the protection afforded by the business structure can be compromised.
You are a person of great influence. If you could inspire a movement that would bring the most amount of good for the greatest number of people, what would that be? You never know what your idea can trigger.
The idea of women empowerment might sound like a cliché, but it is absolutely transformative. But women empowerment is not just about setting business for financial freedom — it’s about giving women a real voice in shaping their industries and communities.
This empowered movement, that is grounded in robust legal frameworks, can ripple through the society in powerful ways. It has been proven time and time again that women led businesses raise the bar for ethical practices, they champion equality and inclusivity. This likewise creates a cycle of empowerment, where more women feel encouraged to step up, lead, and pave the way for future generations.
As we wrap up, how can our readers follow your work?
You can learn more about me and my work on my website www.legallyshecan.com. Every week, I release an episode of the Legally Fluent® Podcast: Online Business Decoded, where I share tips, strategies, and intimate secrets from successful online business owners that will inspire listeners to take action.
Thank you for these fantastic insights. We greatly appreciate the time you spent on this.
About the Interviewer: Chad Silverstein is a seasoned entrepreneur and Thought Leader with over 25 years of business experience. He has founded, operated, and exited multiple companies and now builds into a handful of high impact CEOs. Chad has launched multiple online communities, including a recent leadership development platform, and also serves as a strategic advisor for Authority Magazine’s thought-leader incubator program. To learn more and connect with Chad visit: chadsilverstein.io
Vena Verga-Danemar Of ‘Legally She Can LLC’ On The Top 5 Mistakes Businesses Make Without Legal… was originally published in Authority Magazine on Medium, where people are continuing the conversation by highlighting and responding to this story.