Starting a business is a worthwhile venture yet a complicated process. Venturing out in a tough market is a great act of ambition and courage that most entrepreneurs possess. Bringing a business idea to life is a bold step that leads to countless growth possibilities in an ever-competitive commercial marketplace.
The road toward running a successful business is filled with thorns and spikes. Inevitably, there are tons of obstacles along the way which may discourage you from pursuing your entrepreneurial dream. Regardless of the preparation you’ve done, there are always unforeseen problems that emerge, including legal issues.
Whether we like it or not, small businesses are never spared from a variety of legal issues, from licensing, trademarks, misclassification, to other forms of employee disputes. Managing a business while going through a legal process is tough work for entrepreneurs. That’s why many turn to commercial attorneys and process service of subpoenas when dealing with difficult parties and sensitive situations.
Whatever legal issue your business is facing, entrepreneurs need to familiarize themselves with the legal issues faced by small businesses. In this article, we’ll discuss the importance of getting protection from legal issues and some examples of legal disputes concerning small businesses.
The importance of seeking protection from legal concerns
Making a business dream a reality can sometimes pressure an entrepreneur to establish a new venture as quickly as possible. We understand how exciting it is to run a new business, but being too impulsive often results in catastrophic losses. This will not only cause financial consequences, but one wrong move can cause serious legal troubles.
Solving the issue by yourself will lead to more serious repercussions, especially if it involves legal bases or the other party has filed a lawsuit. In this case, these issues call for a professional legal consultant to help you navigate your legal battle.
Hiring a lawyer is always the first step to managing any legal dispute. Although you know all the ins and outs of your business, legal professionals are in a better position to handle various legal issues.
The choice of lawyer and their level of involvement is something entrepreneurs should consider, especially those who want to enter the commercial market. A legal counsel will help you avoid risk exposure while helping your business start on the right foot.
Choose a legal representative with experience working with startups, small businesses, and new ventures. Often, a lawyer who focuses solely on entrepreneurship may miss important details rather than those who know how to handle issues concerning small businesses.
Legal issues faced by most entrepreneurs
Having a clear understanding of legal issues concerning small businesses will help you prepare and get sufficient background on how you can protect your business from potential legal disputes. Here are some examples of legal issues that any entrepreneur should know.
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Failure to abide by corporate compliance procedures:
Corporate compliance covers everything from regulations, laws, internal rules, and state and federal laws. Licensing is a common legal issue among entrepreneurs for those who don’t file documents in accordance with the requirements of the local government.
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Trademark, copyright infringements, and intellectual property:
Trademark issues happen when entrepreneurs end up naming a business or launching a product or service that’s already existing.
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Personal and business assets:
Combining one’s assets with their business is a common issue among entrepreneurs with poor financial management strategies.
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Employment contracts and handbooks:
This happens to businesses who fail to abide by employment agreements after signing a contract. Employees may file a lawsuit if the company disregards their rights.
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Employee termination:
Businesses can face legal charges if they have no valid reason for termination. Valid reasons range from incompetence, dishonesty, poor quality of work, and attendance issues.
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Shareholder agreement:
This happens when a business owner decides to sell or split up the business without any existing agreement. Leaving gray areas can also spark legal battles if both parties can’t define the situation.
The bottom line
We cannot stress the importance of starting early when hiring a legal consultant. Before starting a business venture, look for lawyers who specialize in working with startups and small business entrepreneurs and understand the local business laws.
Having legal counsel during the beginning phase of the business is critical in case you get sued for whatever reason. For example, if you’re likely to face tax issues, consider hiring a tax attorney aside from the one who specializes in entrepreneurial ventures. This will give you peace of mind to navigate the legal process and protect your assets.
As an entrepreneur, it’s important to stay on top of basic legal concerns from the beginning. Managing a business is hard, which may tempt you from pushing off your legal troubles. But keep in mind that things will run smoother if you follow the right legal measures from the start. Whatever legal concern you’re facing, consult a business lawyer to guide you on your legal battle.
