start and run a small business not only takes business savvy, but also some legal knowledge. There are classes available that can teach you about potential legal issues, but even they can not give you the full spectrum of issues that small business owners face on a daily basis. Protect your small business will contribute to the success of the company. If your small business finds itself in legal trouble it can be a serious disadvantage. Smart business decisions start to educate yourself about some simple legal issues that can help keep your business focused on business. Here are the top 5 most common mistakes that you can avoid with small business.
1. Verbal agreements Please do not rely on this. Written contracts and service are so important to protect your business if you have to go to court. It is difficult for a verbal agreement to hold up in court. Negotiate contracts is also important in ensuring that each party risks and opportunities are clearly defined. Specificity is the key to a well-written and signed contract. If properly negotiated agreement should provide reasonable protection for businesses and their interests.
2. Choosing the wrong business structure: If you decide to incorporate, there are several types of business structures to choose from: S corporation, C corporation, limited liability company (LLC) Limited or General Partnership and Sole proprietorship. Choosing the right party to protect your business and personal assets. While all of these provides owners with limited liability for business debts and obligations, there are pros and cons to each. Choosing the wrong structure could put your business at risk.
3. Failing to protect your intellectual property : Intellectual property refers to trademarks, patents and copyrights and trade secrets of the company. Our brand with your state and federal government, patent your invention, register your copyright, trade secret and protected by a professional and not describing agreements. Intellectual property is often the most valuable asset of a company.
4. instability : Organized documents lead to more accurate accounting, leading to the correct tax return. Just tax reduces the likelihood of revision and if you are audited files will be organized and easy to access. If you can not afford an accountant, you may want to invest in accounting or bookkeeping program to make it easier to keep account of your daily business.
5. not get liability insurance When you own a small business, you have responsibility for your customers, employees and yourself. But you are also responsible for what happens when people use your product or service or set foot on the premises. If you get sued for personal injury or for damage to property, you are covered for claims and legal costs defenses with most policies. If you are caught without, legal fees can just put you out of business.
To avoid this mistake you may want to seek the help of a company lawyer. Company Counsel shall have experience in drafting solid agreements, fair contracts and business deals that allow small business owners to focus on their business and meet the needs of its customers and the industry. Look for a company lawyer knowledgeable about what contracts go to court, this will enable them to negotiate agreements that keep customers out of the courtroom.