There is no doubt that running a business is not only an exciting experience but also a quick way to generate income. However, this road is never a smooth one, especially for entrepreneurs who find themselves on the wrong side of the law.
Surprisingly, most entrepreneurs who are victims of legal suites are either naïve or unaware. So, to avoid such scenarios, we have prepared the following legal tips for small business suggested by Streeterlaw, an Australian law firm where you can find a commercial litigation lawyer in Sydney for your cases.
1. Ensure you are not only covered but also abiding the law
Most businesses that are on the wrong mostly commit crimes while unaware. As such, this often leads to an expensive legal battle that will likely lead to fines worth millions of dollars. Worse than penalties, legal disputes are good at damaging reputations, thus leading to loss of clients and eventually bankruptcy.
So to avoid such horrors to your brand, it’s recommended you understand the laws in your country. Also, you should make sure that you are covered and are operating within the regulations of the law. To implement this, you should seek a legal advisor and avoid putting our brand behind bars.
2. Set up a good portion of legal fees
Setting up a legal budget is as essential. However, most businesses rarely budget on legal expenses – and if they do, they mostly underestimate their legal costs. Legal expenses are mostly underestimated due to legal complexity and other factors. As a result, this makes the budgeted fee less than anticipated. Therefore, to avoid this, businesses should consult with business attorneys when budgeting.
Additionally, they should and set aside buffer funds just in case they budgeted low on legal fees. When budgeting, consider the various fees, bonds necessary to keep your business on the right side of the law. A good approach would be to speak and consult entrepreneurs within your field – Ask them on how much they have spent before on legal fees. As such, this will help you determine a better estimate of legal fees. So budget wisely and avoid dipping into funds set aside for development.
3. Document all your agreements
Most businesses are involved in trading and selling of goods and services. Documenting business partnerships is a must for any business looking to grow and make a profit. Theoretically, most cooperation’s seal deals with a handshake. However, this traditional method may turn out to be costly in case of business disputes. So to avoid any legal mix in the future, cooperation should document and store their transactions.
4. File your taxes on time
Filing taxes is usually as easy as filling online forms for your business. However, most organization evade their taxes and end up finned millions. So to avoid this, entrepreneurs are advised to review federal tax laws and abide by them. To file taxes, visit your online account with your organizational number.
5. Identify your employees well
Employees are the building blocks that run and help a business grow. They invest their time in working and taking the company to the stars. Therefore, if you are running a good business, you should screen your employees well before handing them a job. Go as far as doing a background check on their criminal history to be on the safe side. Also, while you are at it, keep in mind the rights of employees and avoid braking them, at all costs.
The bottom line
As seen above, the pace of the world’s economy has given rise to numerous entrepreneurs. However, most business startups are operating outside the legal bounds. As a result, this has left most businesses facing legal battles that lead to suspension and closure. Nonetheless, the above tips will come in handy one way or another in making your business a legal firm.
About the Author
Emily Lamp is a professional writer, working closely with many aspiring thinkers and entrepreneurs from various companies. She is also interested in technology, business growth and self-improvement. Say hello to Emily on Twitter @EmilyLamp2.