The success and sustainability of any small business requires an understanding of the legal aspects of running the business, including addressing any legal issues that arise. However, in the fast-paced world of small business, having a dedicated legal advisor might seem like a luxury that only larger corporations can afford.
If you’re unfamiliar with fractional general counsel services, let us introduce you to the concept. This cost-effective approach allows businesses to access the expertise of seasoned legal professionals without the financial burden of hiring a full-time, in-house attorney. Fractional general counsel provides small businesses with on-demand legal support, ensuring that they have timely and strategic advice when needed.
These legal professionals become familiar with the intricacies of the business, its industry, and specific legal challenges it may face. By understanding the unique context of the business, fractional general counsel can proactively identify and address potential legal issues, helping small businesses stay compliant and avoid common pitfalls.
Top Legal Mistakes for Small Businesses
In this article, we will shed light on common legal pitfalls that small businesses frequently encounter and provide insights on how to avoid them. At Ochroch Law, our fractional general counsel services can help you establish a solid legal foundation, avoid unnecessary legal issues, and proactively address any legal issues that arise.
Incomplete or Neglected Business Structure
Choosing the right structure and the most beneficial place in which to register your business, provides the foundation in establishing your entity and involves many important considerations. Many small businesses make the mistake of either rushing this decision or neglecting it altogether. Ochroch Law recommends a thorough evaluation of the company’s options such as whether to operate as sole proprietorship, or register as a limited liability company, partnership, or corporation. This ensures alignment with the business's future goals and legal obligations.
Poorly Drafted Contracts
Contracts are the backbone of business relationships, and poorly drafted or generic contracts can lead to disputes and legal headaches. Do not underestimate the importance of customized, well-drafted contracts that clearly outline the rights and responsibilities of all parties involved. This includes agreements with clients, vendors, employees, and any other business partners.
Non-Compliance with Employment Laws
Employment laws are intricate, and non-compliance can result in severe consequences. Small businesses often make the mistake of overlooking employment regulations. At Ochroch Law, we advise businesses and keep client’s informed about federal and state labor laws, including wage and hour regulations, discrimination laws, and workplace safety standards, avoiding legal troubles and ensuring a fair and lawful work environment.
Neglecting Intellectual Property Protection
Protecting intellectual property is crucial for businesses relying on unique ideas, branding, or inventions. We cannot overemphasize the importance of patenting original works, trademarking logos, business names, and any unique products or services. Failing to secure intellectual property rights can lead to legal battles and potential loss of business assets.
Inadequate Record-Keeping
Accurate and organized record-keeping is not only good business practice but also essential for legal compliance. Small businesses often neglect proper bookkeeping, which can lead to issues with tax authorities and regulatory bodies. It is in your best interest to implement efficient record-keeping systems to ensure transparency, facilitate audits, and prevent legal complications.
Ignoring Cybersecurity and Data Protection
In the digital age, small businesses are vulnerable to cyber threats and data breaches, and there are myriad legal implications of neglecting cybersecurity and data protection measures. Small businesses should invest in secure IT infrastructure, implement data protection policies, and stay compliant with privacy regulations to safeguard sensitive information and maintain customer trust.
Contact Ochroch Law Today
At Ochroch Law, we understand the challenges that small businesses face in managing legal requirements and regulations. Being proactive and seeking legal advice from the beginning, businesses can avoid these common legal mistakes and establish a solid foundation for growth, mitigating the risk of legal disputes. Early guidance can save you time, money, and headaches down the road. With fractional general counsel, you can have an “in-house attorney” at a fraction of the cost. Contact Ochroch Law for personalized legal solutions and to learn more.
marjorie@ochrochlaw.com
Serving Montgomery County and the Greater Philadelphia Area