Common Legal Mistakes Business Owners Make: Part 1

Starting up a business is difficult. Even the most successful businesses to date have had bumps in the road. Business owners need to be aware that when creating a new entity in the business world, there is going to be red tape stopping them at almost every turn. Being prepared and having the right resources can make it easier for businesses to create success. Amongst the common mistakes that are made, many of them are legal mistakes.

 

Not Using a Lawyer

Many new businesses face the mistake of waiting too long before bringing in legal representation. They believe that they do not have similar legal obligations that established businesses have. They believe that legal issues will only come when the business scales and they have time before they have to hire a lawyer. This is a huge mistake. You want to hire a lawyer from the very beginning. This can save you massives costs down the road. If you have a lawyer right off the bat, they can help you establish your business correctly from the start.

 

Not Placing Terms and Conditions Policies

When you’re on websites, it is common for a “Terms and Conditions” checkbox to pop up. By checking this box, customers are agreeing to specific uses of your products and services and the obligations that come with being a customer. If you do not have these policies written and published, you have set yourself up for a lawsuit if a customer would choose to proceed with legal action.

 

Lack of Privacy Policy

Your privacy policy is to be public. Your customers and business partners have a right to know what you will be doing with the information they supply to you. If you are sharing your customer list, your customers have a legal right to know what is happening. The privacy policy will lay out the information it does and doesn’t share.

 

Business Tax Laws

Tax laws are complex no matter where your business is located. You should hire a legal professional to answer questions about what taxes your business is subject to, when you must file your tax returns, how often you need to make payments, and more. A lawyer can help keep your records and help file your taxes when it is required.

 

**This article is for informational purposes only and is not intended to be legal advice. In relation to your individual situation, always seek advice specific to your circumstances from a lawyer.

Quick LInks