Home Business Insights & Advice Six legal pitfalls to avoid when running a business
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Six legal pitfalls to avoid when running a business

by Sponsored Content
30th Jun 21 4:38 pm

Entering the business world and establishing a business may not be as easy as it may seem. Aside from worrying about your business operations and making them thrive in your prospective industry, you must also be wary about the legal hazards that can significantly affect your business and hinder your business operations. Apart from that, you should also know how to protect your business from legal liabilities.

Protect Your Business Against Legal Mistakes

If you’re one of those business owners who are having a hard time comprehending this matter, you need not worry anymore. With the help of various reliable sources and competent legal counsels, you can now effectively insulate your business from such risks. For instance, if you’re living in the areas of Miami, you can consider hiring a Miami business lawyer to help you get through these issues and assist you with your legal concerns.

1. Process your business licenses

When it comes to starting your entrepreneurial journey, one of the primary things that you must accomplish is the registration of your business. Be it the type of business you’re going to operate or the set of regulations that you must abide by, you must prioritize your business licensing processes. Abiding by the laws of business licensing in your area might also be of great use in this aspect.

Although licensing isn’t a new concept in the field of business industry, many business owners still have a hard time managing their business licenses. Many well-established business operators and owners even believed that licensing is one of the most common types of legal concerns that some business owners find difficult to deal with. To prevent risks of having to pay licensing fines, you must be able to follow your local government’s requirements for business licensing.

If you’re still having difficulty in handling such processes, you might require the help of competent lawyers and can even turn to your local government licensing agency for some assistance.

2. Establish distinct trademarks

Have you ever encountered some businesses with similar trademarks or with almost identical company names? Although you must see that there are slight differences in the pronunciation of their brand names, there’s no going around the fact that such instances can give rise to cases of trademark infringements.

Apart from business licensing, another interestingly legal issue that was commonly faced by many business owners includes registering business trademarks. Although many novice business owners may view this aspect as a trivial matter, there’s no denying that even the most established businesses suffered from trademark issues and have to deal with losses afterward.

To know how you can efficiently reduce the risk of being a victim of trademark infringement, always conduct research whenever you’re planning to establish a business or rename it. You must also prioritize doing an inquiry whether certain businesses already have ownership with the trademark that you’re been thinking about. Trademark infringements aren’t things that you’d like to encounter in your first days as business operators, so might as well prevent the chances of their occurrence.

3. Differentiate your business from the others

Talking about trademark infringements and the need to constantly research your future business endeavors, another thing that you must be wary about is your brand positioning. You may not know it, but this aspect can pose significant impacts on your business once neglected.

There are various hardships that you’ll encounter in the first stages of your entrepreneurial journey. One of them is the challenge of making your brand name stand out from your other competitors. Failing to do so can result in negative impacts on your business’s long-term sustainability. To avoid suffering from these risks, you must always be mindful of your business condition in the market, as well as the distinctness of your brand.

4. Manage threats of litigiousness

If you think that certain business disputes can’t be resolved with any agreement or sensible bargain, you must know that filing a lawsuit may not always be the best decision. But before that, it might be a good decision to seek professional help first from competent attorneys. After all, hiring a skilled lawyer can be of great value in helping you deal with business legalities.

Going back to your initial legal concern, you must first consult your lawyer before filing a lawsuit as this might cause you hefty legal fees. If there are ways that can help you create and have a win-win situation with the other party, then you must go for that to prevent risks of paying for lawsuit settlements.

5. Avoid wrongful terminations

Apart from making an exceptional brand name, another thing that you must consider is the issue of employee termination. In your business endeavors, you’ll encounter instances of choosing the wrong people you’ll work with. There are instances when you’ll hire a person who you think can be a great asset to your company, and they’ll prove you wrong. In such scenarios, you must take precautionary measures before you terminate any of them as these may result in wrongful terminations.

Unlawful termination of your employees, no matter what the reasons may be, can be used against you and your business. To avoid dealing with such issues, you must always remember to take legal advice from your trusted lawyer about the best legal measures you must administer before doing anything.

It could also be of great help if you’ll explain thoroughly to your employees all the terms and conditions that your company has been implementing. Moreover, you may also consider documenting any untoward incidences caused by your employee or disciplinary actions involving these people.

6. Worker misclassification

While the previous topic talks about the proper measures you must take if you’re considering terminating certain employees, this section will talk about the proper selection of your employees with regards to your local government’s standard requirements and regulations.

The misclassification of employees is also another thing that you must avoid, as this can result in various legal issues, including instances of classifying them as independent contractors. Before you identify someone as a freelancer, you must first consider seeking your legal counsel’s advice to prevent risks of legal issues in the future.

Bottom line

Establishing your business isn’t as easy as it may seem. With the presence of various risks and threats that may affect your business, you must be knowledgeable enough to know how you can protect it against the menaces of legal liabilities and pitfalls. To efficiently insulate your business, it might be an ideal option to hire competent legal counsel who’ll help you deal with the legalities of your business.

Apart from that, you must also study how business works to ensure how you can counter the negative factors that may affect it.

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