4 Common Mistakes Business Owners Make
No one can deny that running a business is tough work. You have a lot of components to juggle. When protecting your company and your rights, you may need to have a lawyer you can trust. If you don’t have a lawyer, you could fall victim to a number of different mistakes. Mistakes are rampant in life and no matter who you are there is always a chance that mistakes can be made. This is especially true of businesses too. The more people involved with a business the more opportunity there is for potential mistakes. Let’s take a look at 4 common mistakes that business owners make.
Not Choosing the Right Business Entity
One of the most difficult decisions that a new business owner has to make is choosing a business entity. Do you know which business structure would work best for your company? You have choices between partnerships, sole proprietorships, limited liability companies and corporations. Every business structure has benefits and disadvantages. LLCs, for instance, offer you tax advantages and limit your personal liability. A lawyer can help you decide on a good structure.
Not Understanding Current Labor Laws
If you don’t know every labor or employment law, no one could blame you. There are a variety of local and federal laws that apply to your business. You may not know the different hiring, firing, and discrimination laws or the regulations on health and hours. Every year, the laws can change. Given the speed at which different labor laws change, you may have trouble keeping up with it. As a business owner, you have an obligation to comply with all of the different laws. You and your employees should always be informed of a variety of regulations. When you don’t know the labor laws, it is easier to break them. When you have a lawyer on your side, he or she can inform you of employment laws.
Not Using Contracts
Some business owners don’t use valid contracts when making deals with other individuals or entities. For example, you may make a deal with a client, shake hands and decide that the deal is finished. Handshakes and generic contracts are not always good enough. These do not take into consideration the unique issues that may spring up. Breach of contracts is something that happens too. If this happened to you then consider reaching out to a breach of contract lawyer in Des Moines, IA from a firm like the Law Group Of Iowa.
Not Keeping Records
Running a successful business requires you to keep detailed records. For instance, you need to keep records of the following:
- Employee identification
- Sales tax
- Corporate minutes
If you do not have adequate records, you may be unable to qualify for a business loan or other types of funding. Without appropriate records, you may also face penalties.
Before making a grave business mistake, set up a consultation with a lawyer as soon as possible. He or she can advise you on how to protect your business, assets and your rights.