Many small business owners must understand the legal requirements of running a business. From ensuring your business complies with government regulations to properly licensing your business, failing to follow the proper legal procedures can result in detrimental fees and even cause your company to shut down.
Contract Disputes
As a small business owner, it’s easy to get caught up in the success and operations of your company. Unfortunately, this can lead to unintentional breaches of law that could cost your business in fines and lawsuits.
Contract disputes are common in business, whether it’s a dispute with a supplier, customer, contractor, or other business partner. It’s essential to have a lawyer help you draft contracts and ensure they include all the information needed.
Researching trademarks and intellectual property rights is essential before launching a new product or service. Failing to do so could leave you open to legal hot water if you infringe on someone else’s intellectual property rights. Even if you don’t violate, your business name may resemble an existing trademark, leading to legal problems. An experienced attorney can help you avoid these issues by advising on the best legal practices. Dispute resolution methods like mediation are often cheaper and more effective than litigation.
Intellectual Property Issues
The unique ideas, products, and marketing plans that small businesses often develop can make them stand out from their competitors. However, they must ensure these are protected by copyright, patent, and trademarks or face infringement lawsuits.
Intellectual property issues are costly and can damage a company’s reputation and make it lose business in the future. A Denver business attorney specializing in intellectual property can help a small business understand how to protect its products, services, and unique ideas and avoid the risk of legal action.
It is easy for small business owners to get caught up in the success of their business and operations, which can lead them to breach laws without realizing it. Understanding common legal issues faced by small businesses and how to address them can save a company thousands in litigation costs and lost revenue. The right legal counsel can also guide a small business by establishing the proper business structure and filing taxes.
Licensing Issues
Starting a business requires a lot of licensing and permits. In some cases, failing to obtain the correct licenses could result in fines, lawsuits, and even jail time. The number of permits required for a particular business varies depending on the type and location of the company.
Patent infringement is another common legal issue small businesses face. Small firms can unknowingly infringe on other companies’ intellectual property without a patent attorney and become subject to expensive litigation.
Employee-related issues are also a frequent source of legal trouble for small businesses. Business owners need to create employment agreements that clearly define the roles and responsibilities of each partner. Failing to do so can lead to disputes over pay, equity, and other workplace matters.
Keeping up with legal issues and compliance requirements can take time and effort from revenue-generating activities. However, understanding the most common legal issues small businesses face and taking steps to address them proactively can save your company from costly litigation.
Employment Issues
Having a small business or start-up comes with many legal challenges. Due to the jack-of-all-trades nature of their position, business owners can get so wrapped up in the success and operations of their company that they may unknowingly cross legal lines. This can have costly ramifications and potentially expose the business to civil lawsuits from customers or other entities.
Small businesses must have proper employment agreements to protect themselves from litigation. Additionally, they need to have a lawyer review any significant decisions regarding the company to ensure that they won’t result in legal issues.
Finally, a company must have proper tax preparation and compliance in place. This includes obtaining an EIN, properly establishing their business entity, and keeping accurate records of transactions and books.
