Mistake 1: Keeping your IP inside the operating company.
Most founders register a limited company and put everything inside it - the brand, the trademarks, the copyrights, the IP. It feels logical. It's actually one of the most exposed positions you can be in. Your operating company faces creditors, HMRC, and legal risk every day. If your IP lives inside it, so does your most valuable asset. The fix: separate the business operation from the royalty tier. Your IP should sit in a protected structure - insulated from the operational risks of the trading entity.
Mistake 2: Giving away equity before you understand the 95/5 structure.
Founders dilute themselves early - through co-founder agreements, investor rounds, or employee share schemes - without understanding that control and ownership don't have to be the same thing. The 95/5 equity split allows founders to retain full control by keeping just 5% of shares personally, while moving the remaining 95% into a trust - with themselves as lead trustee. You control the trust. The trust holds the equity. You remain in charge. Read more: How to legally shield your startup equity →
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3 Mistakes UK Founders Make in Year One
You've incorporated. You've got your Companies House number. Now what? Most UK founders move fast - and in doing so, they build on unstable ground. These three structural mistakes are common, costly, and almost entirely avoidable.
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Want the full blueprint?
The BLACKBOOK PROTOCOL covers all three structures in detail - with module playbooks, filing checklists, and free access to the Protocol Architect: an AI advisor built specifically for UK founders, connected directly to Claude, ChatGPT, or Cursor. £24.99. Built for founders who build to last.