The Big Perils of Small Business
One of the most important aspects of our economy is the entrepreneurial spirit that creates jobs, expands (and sometimes disrupts) various markets, and services our communities. While the benefits of starting a local business and owning and maintaining a small business are often very significant and rewarding, the costs can be high when legal problems arise. If you own or plan to own a small business, you should consider speaking to an attorney about any problems you encounter.
A small business can encounter many different types of legal peril, from civil lawsuits to taxation issues. These issues can vary by industry, but there are some common missteps that small businesses often make that can lead them down the road to legal problems in the future.
- Failure to incorporate the business. While you can certainly start a business by doing the work, it is helpful to formally incorporate your business and determine which legal structure works best for your needs and expectations for the company. An experienced attorney can educate you on the various types of legal structures so you can choose the best one for you. Keep in mind that failure to incorporate in a proper way can lead you as a business owner through the door of personal liability when your business is sued.
- Failure to comply with human resources concerns. From an employee handbook to a harassment policy, your business is responsible to ensure that your employees rise to a certain standard of conduct and that it provides your employees with certain benefits that do not violate laws.
- Failure to execute a shareholders’ agreement. It is important to have a document that governs the actions that everyone should take in the event that you sell the company or a key shareholder leaves. Otherwise, the situation can become chaotic and result in further losses and actions that can harm your business.
- Unprotected intellectual property. It is important that you talk to an attorney to ensure that any of the company’s intellectual property is protected by a patent, trademark, or copyright. Waiting until another company tries to steal your ideas will cost you more of your precious resources.
- Litigious habits. If you would rather fight all your legal battles in court, you’re likely to lose a lot of money and time that way. It is important to know when to settle and when to litigate your battles. An experienced attorney can help you determine when you should pursue trial over a settlement.
- Failure to protect customer data on the internet. It is important that you take all necessary precautions to ensure that your customers are able to safely input information on your company website. A loss of customer data can have your business on the hook for significant expenses related to the harm your customers may have suffered.
Make Sure to Seek Legal Help
Handling your legal battles alone can lead to the expenditure of precious resources, like time and money, that should be concentrated towards running your business. You do not have to figure out how to solve your business’ legal problems on your own. You need a partner, and in Florida, there is no better partner for your business litigation needs than Pike & Lustig, LLP. Contact us immediately to help defend your business so you can get back to running your business.
