Securing legal insights may not be the priority when you first think about launching a digital brand with your best mate or creative partner—but maybe it should be.
From YouTube duos to podcast pals and joint TikTok ventures, more creators than ever are joining forces. But here’s the catch: without the proper legal foundations, even the strongest collabs can turn sour.
That’s why Heringtons Solicitors are worth having in your corner. In this blog post, our experts will explore the essential legal steps every creative partnership should tick off before going pro.
Why Legal Prep Matters More Than You Think
When two or more people decide to turn a shared passion into a profit-making venture, things can get complicated. Who owns what? Who makes decisions? What happens if someone wants out? These aren’t just hypotheticals—they’re common pitfalls for digital partnerships.
If you skip the legal stuff, small misunderstandings can spiral into public fallouts or financial disasters. So whether you’re launching a YouTube channel, joint Substack, or a digital design studio, laying the groundwork is key.
It’s not just about protecting your project—it’s about protecting your friendship and the brand you’ve worked so hard to build. Many successful partnerships start with trust, but without legal clarity, even the best intentions can lead to confusion or resentment. So make sure the excitement of your launch is matched with the safety net of a sound legal structure.
1. Create a Partnership Agreement (Yes, You Really Need One)
First things first, if you’re starting a business with someone else, a partnership agreement is your legal safety net. This document outlines key things like:
- Who owns what percentage of the business
- How profits and losses will be split
- Who handles what roles and responsibilities
- What happens if one of you wants to leave
Without this, you’re exposing yourselves to risk. In the UK, general partnerships are governed by the Partnership Act 1890, which may not suit the needs of a modern creator business. Having your own bespoke agreement is better.
This agreement also ensures that decisions are made fairly and transparently, with mutual understanding rather than assumptions. Even couples and family members working together should formalise their arrangements in writing.
The government provides a helpful guide on partnership agreements so you can see what should be included.
2. Choose the Right Business Structure
Are you registering as a partnership? A limited company? A sole trader duo? Your legal structure affects your liability, taxes, and even how professional you appear to potential clients or sponsors.
For example:
- A limited company gives you limited liability (your personal assets are protected).
- A partnership is easier to start but riskier if things go wrong.
Many digital creators opt for limited companies for the legal protection and credibility. However, it also comes with more admin and reporting obligations. Indeed has a breakdown of business structure pros and cons.
This choice can also affect your ability to raise funds, hire staff, and sign contracts. If you’re planning to scale or eventually sell your business, thinking about your structure from the start is essential.
3. Protect Your Intellectual Property (IP) from Day One
Creative work is your bread and butter, so you must know who owns it. If you’re designing logos, writing scripts, editing videos, or coding software, it needs protection.
Key IP considerations include:
- Registering trademarks for your brand name or logo
- Copyrighting your original work (this is automatic in the UK but proving ownership helps)
- Defining IP ownership in your partnership agreement
You should also consider what happens to your IP if the business ends. Will both of you keep access? Does one partner buy the other out? It’s not fun to think about, but it can prevent a big mess later.
A common mistake is assuming that collaborators retain rights over their contributions. Without a clear agreement, this can lead to legal wrangling if your business takes off and becomes valuable.
For more on IP protection, check out this guide from the Intellectual Property Office.
4. Get Your Contracts in Order
If you’re hiring freelancers (like video editors or graphic designers), collaborating with other creators, or working with sponsors, contracts are non-negotiable.
A good contract will spell out:
- Deliverables (what’s expected)
- Payment terms
- Usage rights for content
- Timelines and deadlines
Verbal agreements or handshake deals might seem chill, but when money gets involved, they fall apart fast. Use written agreements every time—even with friends.
You’ll also want to include terms about dispute resolution and breach of contract. If someone doesn’t deliver on time or you’re unhappy with the quality, the contract gives you a legal basis to respond.
5. Think Ahead with Exit Clauses
Nobody wants to plan for a break-up when everything feels exciting and new. But just like a prenup, an exit strategy protects both parties.
What happens if:
- One of you wants to quit?
- Someone becomes inactive?
- You disagree on future direction?
You can include these scenarios in your partnership agreement or a separate shareholders’ agreement (if you’re running a limited company).
It’s also worth having a plan for splitting assets, dividing content rights, and even retaining access to business accounts like YouTube or Instagram.
Don’t forget to include timelines and procedures for handing things over. If one person leaves, how much notice is required? How is compensation or equity calculated? These decisions are best made at the beginning, not in the middle of a crisis.
Extra Tip: Register with HMRC (and Stay on Top of Taxes!)
Whether you’re forming a company or sticking with a partnership, don’t forget to register with HMRC. You’ll also need to:
- Keep accurate financial records
- File tax returns annually
- Consider VAT registration if your income is above the threshold
Digital businesses are just as accountable to the taxman as brick-and-mortar ones. There’s a helpful HMRC tool to help choose the right tax setup.
Also consider appointing an accountant early on. They can help you set up your books, manage expenses, and ensure compliance—so you avoid nasty surprises at tax time.
Trust Is Great—But Legal Clarity Is Better
When you’re launching a business with a mate, you might feel like contracts and legal docs kill the vibe. But they actually do the opposite. By getting clear on expectations and boundaries, you can preserve your friendship and keep the focus on creating, not conflict.
Your relationship deserves protection, and a bit of paperwork now can save a lot of stress later. It’s about future-proofing your partnership, not dampening your creativity.
Setting Up for Long-Term Success
Starting a digital business with another creator is an exciting adventure. But don’t let enthusiasm override caution. By covering these five legal essentials, you’ll be set up for smoother collaborations, fewer disputes, and long-term success.
Whether you’re dreaming of monetising a gaming channel, growing a brand consultancy, or launching a newsletter, getting the legal stuff sorted makes all the difference.
Remember, if anything feels too complex, reach out to experienced legal professionals. It could be the best investment you make.
This article is for informational purposes only and should not be considered legal advice. Please consult a qualified solicitor if you’re setting up a business partnership or need support with contracts or intellectual property.
