Owning and running a small business is a responsibility that can demand all of your time and energy. While you are working so hard to take care of your business, it can be hard to learn about business law and problems you should avoid. Legal mistakes can have considerable consequences that jeopardize the success of your business, so here are five legal issues your small business should try to avoid:
Employee termination
Before hiring anyone to work for you, make sure you understand your legal rights to fire them. Making a mistake during the firing process can result in an employee suing you for discrimination or employee rights violations. Be sure to clearly define the terms of employment to any employee in written documentation before hiring them.
Wage and hour disputes
Keep thorough and accurate records of your employee’s pay. When there are disputes about what you should be paying your employee or how much they should be earning for their time, the records you keep can make the difference in whether or not they can successfully Sue you. Make sure you also abide by all laws related to your employee’s pay.
Choosing the wrong business structure
Partnerships, LLCs, and sole proprietorships are just a few of the types of business structure your business can take. Choosing the wrong one can leave you vulnerable to all types of legal liabilities and threaten your business as a whole. You may also wind up filing the wrong taxes for your company because it has the wrong business structure.
Discrimination matters
The Civil Rights Act of 1964 protects several different groups of citizens from discrimination. As a business owner, it is important to be aware of these protected classes and what constitutes discrimination against them. A discrimination claim can be enough to ruin your business and it’s future after you have to pay considerable settlement fees and suffer a diminished reputation.
Defending yourself without legal representation
Suppose you are facing a serious business law issue and are attempting to settle the matter without an experienced business law attorney’s guidance. In that case, you may be preventing yourself from securing the best possible outcome in that situation. Rely on a business law attorney’s experience to provide you with the guidance and representation you need to defend yourself and your company.
