From email security threats to hackers and digital marketing woes to inundation in your field, small business owners have a lot to contend with. However, on top of the other problems, there are very real legal issues that your small business could face if things aren’t handled the right way. In this blog, you’ll find a few of the possible legal issues you could face as a small business owner if you aren’t careful and do things the right way, the first time.
Failure to Organize a Business Entity
Far too often, business owners wait to form a business entity. Whether it’s unfamiliarity with the process or not having the money to do so, it’s not a good idea to wait until later on. The truth is that you’re forming a business entity in order to protect yourself and your business, so it’s not safe to wait and very unwise.
Failure to get a Small Business Lawyer
Another mistake business owners who are just starting out tend to make is not keeping a small business lawyer on retainer. Though it could take a hefty chunk out of your monthly budget, having a law firm such as Cory Briggs Attorney in your corner only makes good common and good financial sense. For example, you never know when a customer will fall in your place of business and sue or when your taxes will be audited or branding issues could come into question. That’s why it’s so important to have a reputable lawyer in your corner from the inception of your small business.
Working Without a Contract
In your small business, as well as your personal life, you should never take on any work without a written contract. Doing so opens you up to a variety of problems you don’t want to face. A carefully laid out and detailed contract covers you and your client in case something were to happen. While you can draw up a contract for work yourself, it’s much better to let your attorney handle it and have them go over the contract before you sign on the dotted line, just to avoid potential loopholes and trouble in the future.
Ignoring Tax Laws
Something that can land you in hot water faster than anything else in small business is ignoring tax laws. Whether it’s the local, state or federal government, ignoring the tax laws can end with you being audited and possibly getting into serious trouble. To avoid this, make sure to file your taxes the right way and find out the tax laws in your area before you open the doors on your business for the first time.
Skipping on Insurance
While it may seem like a great idea to hold off on getting insurance for your small business, it’s truly not. Business insurance protects your business from liability. There are many different types out there, so do your research to find which policy is best for you. The last thing you want is to be sued for whatever reason and not have the insurance to cover it. In many states it’s illegal not to have business insurance, so don’t get caught without it, or you could be in for a hefty fine, or worse.
Being a small business owner is exciting and can be a bit overwhelming as well. The last thing you want is to get into legal trouble for not doing something right. Instead of ignoring the tips above, make sure to do things the right way to avoid any trouble that could come your way.