Small Business Owner Legal Tips
It may be easy and a lot more affordable to start a small business on your own than venture in a partnership or corporation, but one thing you must acknowledge is the fact that small businesses are likely to encounter a wide array of legal issues. Well, the reason why small businesses tend to face more legal issues than a corporation is because the very structure of sole ownership usually is very open to personal liability issues. Simply put, there’s a tendency to mix business issues with personal and non-business issues.
This is the reason why even small businesses find a way to include the hiring of a legal expert or professional. It’s always better that way because even if you’re spending money to pay for legal advise, you’re in a way doing it as some kind of long-term investment.
But while you hate to admit it, you still are in doubt as to whether you can produce capital to pay for legal advice and you might be thinking right now that you could be using that money for other business-related stuff; so as you wait it out, how about getting some few legal tips for business safety and security from us?
Tip 1 – Be reminded that certain contract workers in your business must be classified a contractors, not employees. The reason for this is because the IRS does not consider contractors and employees as the same. As you decide which ones should be labeled as contractors, don’t forget to put everything in writing and then inform them about it; in fact, they have to agree with the term given to them before you hire them.
Tip 2 – Put an emphasis on paying all your bills pertaining to your business on time. This isn’t just about avoiding fees, but lawsuits altogether.
Tip 3 – You also must prioritize paying the payroll tax on time. You obviously don’t want to end up being held personally liable.
Tip 4 – All documents and contracts where your business is represented must be legally binding. The best way to do this is by having all contracts put into writing and signed.
Tip 5 – Be sure you are willing to disclose and be transparent when it comes to disclosure of earnings and financial information, and start right by issuing receipts every single time you sell goods or offer services in return for payment.
Lastly, if you don’t want to end up having to lose everything and you don’t have any other option left, then it’s better that you protect your personal assets as early as now. Fortunately, there are more than a couple of things you can do in order to protect your personal assets, including the purchase of business liability insurance, limiting company debt as much as possible, incorporating, or even forming a limited liability company.