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September 22, 2016

Common Legal Mistakes Businesses Make

Category: Business Law, Business Liability, Uncategorized | Tags: ,

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Business owners have a multitude of concerns to juggle, and the most crucial of these relate to legal matters. That’s because failing to be proactive about legal questions can cost the company considerable time and money. For the sake of employees and the organization itself, it pays to be on the lookout for these common legal mistakes.

Not Hiring a Business Attorney

Many entrepreneurs start a business on a shoestring budget, but that doesn’t mean that it is acceptable to forego legal advice. In fact, considering the tremendous financial and even criminal consequences that may be at stake, no owner can afford to be without an attorney. Working with a lawyer from the beginning can help companies avoid the other common mistakes.

Not Taking Care of Employees

First-time business owners may also be first-time employers. This comes with a sense of responsibility and the need to comply with a variety of laws and guidelines. It’s vital to ensure that employees have a safe, legally compliant workplace. Moreover, owners must be aware of anti-discrimination laws and ensure that they are followed to the letter. Failing to take care of employees may mean government sanctions and lawsuits brought by workers.

Not Choosing the Right Entity Type

Choosing an entity type depends upon a number of factors. Forming a corporation or limited liability company makes sense if you want to protect personal assets. Typically, it is wise to consult with a business attorney before making a decision.

Going Without Written Agreements

Whether it’s contracts with employees, suppliers or customers, a business runs on the quality and thoroughness of its written agreements. Without them, employees and other components of the organization may be unclear about their rights and responsibilities. Asking an experienced attorney to draft contracts or review agreements is always a good idea.

If you have questions about employment law in Missouri or Kansas, Daniel Miller can help. Call us today, or fill out our online contact form.