How To Protect Your Company From Legal Trouble

Image source: Unsplash | How To Protect Your Company From Legal Trouble | Running your own business can be incredibly rewarding. However, taking those rewards will require overcoming numerous challenges and dealing with certain stressors. One potential stumbling block is running your business in such a way that you can stay out of legal trouble. These are the tips you need to know in order to deal with or avoid legal problems.

What To Expect From Legal Problems

While avoiding legal trouble entirely is always the right call, mistakes will happen, and some of those mistakes can create major problems. Knowing what to expect in these situations is key to surviving the ordeal. For starters, court proceedings are notoriously lengthy for most cases, and that current atmosphere has exacerbated that problem quite a bit. Try Googling “court reporters Phoenix” and you’ll get an idea of how the pandemic has thrown a wrench into the works of the judicial system. Spending all of that time in court will have a few repercussions. The price of legal counsel will likely increase in direct correlation to the length of a trial, for example. Being in the public spotlight for a trial will also have a direct impact on your company’s reputation and credibility, but this may not be an issue for smaller businesses. High profile cases are typically widely publicized, however, and even small businesses warrant coverage by local news outlets. Some legal infractions will result in fines, while lawsuits can result in greater monetary penalties in the event of a loss, and many small businesses won’t be able to recover from this kind of loss, so it pays to stay above board instead of risking it.

The Legal Pitfalls You’ll Need To Avoid

An ounce of prevention is worth a pound of cure, as they say, and avoiding lengthy court cases and exorbitant fines and fees is ideal. In order to do so, you’ll need to know the laws that govern your business inside and out, because business law has a couple of potential pitfalls that may prove to be counterintuitive for the uninitiated. For starters, you’ll need to hire an accountant as soon as possible, because keeping accurate financial records is crucial. A business is accountable for reporting their earnings accurately on a quarterly basis, and discrepancies in your reports can warrant an IRS audit. If your business is deemed by the IRS to be suspected of fraud, then you’ll have a legal battle on your hands. You can also land yourself in hot water for the wrongful termination of an employee, and it can be difficult to know what qualifies for this infraction. Trademark and copyright battles are fairly common between businesses, whether or not a violation was committed, and whether it was intended or not. Trademarked properties can be surprising, and that can lead to otherwise innocuous concepts being a landmine for your company if you’re not careful.

What To Look For in Legal Counsel

Any and all businesses should have a lawyer on retainer, just in case. After the inciting incident of a legal battle is a less than ideal time to start looking for an attorney that can handle your case, so you need to have someone on reserve. You’ll also need to find the right lawyer for your needs. For starters, a business lawyer should specialize in business law. More importantly, your lawyer needs to have a good track record and a good reputation. Otherwise, you’re facing an uphill battle. A business attorney is also a crucial asset outside of court battles, further incentivizing an ongoing professional relationship. Business an attorney can advise you on how to conduct business in the safest way possible and assist with matters of copyright or even incorporating your business.

Small businesses are continually at risk of potential financial problems, and legal trouble is among the most costly obstacles a small business owner can face. Using these tips, you can expect the best by being prepared for the worst.

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