10 Steps Towards Launch! Part 8 - MLM Legal

The following is part 8 in our 10-part series entitled “10 Steps Towards Launch!” by Terrel Transtrum, President/Founder of ServiceQuest. If you are thinking about starting a new direct selling company, contact us today!


The eighth of ten business segments that should compete for your attention is MLM LEGAL.  The world of MLM Law is always evolving, but never dull.  The best MLM attorneys will guide you through the critical issues as outlined below.


  • Legal Review of Compensation Plan, Literature and Publications
  • Design an MLM Distributor / Home Party Consultant Agreement
  • Create the Home Party / MLM Distributor Policies and Procedures
  • Determine the Proper Sales Tax Processes and Policies for Your Company
  • Protect Your MLM Company’s Intellectual Property
  • Set up the MLM Compliance Training and MLM Compliance Administration Systems
  • File the MLM State Registrations
  • Select the Entity that is Right for Your New MLM Business
  • Develop an MLM Library of Essential Forms and Documents
  • Gather an Effective MLM Legal Team That You Feel Good working With


Here are examples of descriptions that you might write for your MLM Launch Best Practice:


  1. Distributor / Consultant Agreement – We have a distributor / consultant agreement (online and/or paper) containing the most recent terms and provisions for complying with state and federal laws and regulations, produced or reviewed and approved by a licensed legal professional.
  2. Compliance – Our compliance system is set up to include online training and certification of new distributors / consultants, compliance research system, compliance administration system, and staff training for handling policy questions.


MLM Legal is an important part of the launch puzzle.  With the right planning and recommendations, you will save a great deal of time, money, and worry as you select and work with the best MLM Lawyers.

For more information, contact Terrel Transtrum terrel@launchsmart.com

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