Running a small business can be extremely rewarding both personally and financially. However, it isn’t an easy feat. Small businesses generally have to use their resources more wisely than large corporations.
Occasionally, this can result in small businesses failing to avoid potential legal pitfalls. Being aware of these pitfalls could help you avoid these mistakes. Outlined below are some essential legal considerations for small businesses.
1. Agreements backed up by contracts
As a small business owner, you may personally know all of your clients. Perhaps you’ve been dealing with them for years. While you might all trust each other’s words, words should not be relied on in business deals.
Even if you’re dealing with people who you consider to be friends, all business deals should be kept separate from the friendship. Every agreement should be based on a legally binding contract. This way, even if the personal relationship turns sour, both parties have rights and obligations.
2. Human Resources issues
Your business may have a small but reliable team. It’s important to remember that these employees have the same rights as those in larger companies. Proper HR policies on annual leave, sick pay, wages, discrimination, discipline and other issues are all vital.
You may want to add people with experience in HR to your team to ensure that your employment policies fall in line with state and federal regulations.
3. Intellectual property
One area where many small businesses can fall behind is intellectual property protection. As a successful small business, larger competitors will always be looking for ways to take your customers away. They may even stoop to copying your branding, slogans and other methods unique to your company.
Looking into legal protection for intellectual property, such as trademarks and copyrights, can help ensure that the playing field remains level.
As you look to expand your small business, it will benefit you greatly to have legal guidance on your side.