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Avoiding Common Legal Mistakes-

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									?Small business owners make legal mistakes all of the time, which often results in the
downfall of a company. Without the proper knowledge, business owners find
themselves repeating the same mistakes. The SBA (Small Business Association)
stresses the importance of ending the circle of disastrous legal errors by investing in
Continuing Education business courses, or by hiring a business consultant.

There are many web sites that offer legal advice for the small business owner. Here
are just a few situations that may arise where you should know your legal rights. In all
these situations you may find it necessary to contact an experienced corporate
attorney.

Contracts or service agreements are a must for any small business. It is difficult to
uphold a verbal agreement in court and therefore a well written service agreement can
protect you and your business. The service agreement should clearly define all
policies and agreements. It should provide protection for your company and its
interests.

In each service agreement you should list in detail what your service encompasses. Be
very specific and don't leave anything out. A signed contract is a very important legal
document and can stand up in court. Also be sure to add what is considered an extra
service and what the charges would be. Make sure that you don't leave anything out of
your service agreement.

At some point you may need to hire or fire employees. Many small business owners
are unaware of their rights and their employee's rights. Even though you may only
have one employee it is important that you are well versed in labor standards and
other regulations. If you need to terminate one of your employees it is vital that you
do it properly.

Disgruntled ex employees may threaten to sue you with a wrongful dismissal suit or
similar legal action. It is vital that you know your rights and what you can do in this
type of situation.

Hiring Independent Contractors - To avoid some of the hefty labor taxes, small
business owners hire Independent Contractors to take up the slack. IC's (Independent
Contractors) are responsible for claiming their income and expenses and filing with
the IRS.

Even though you may have hired an independent contractor the IRS may consider
their job to be that of an employee's. This means things could get complicated for you.
Be sure to check what the IRS considers employee's jobs before hiring an independent
contractor.

When starting your business you need to know how your business is classified. You
may be a sole proprietor or perhaps in a partnership. Each of these designations
carries its own legal ramifications. For instance as a sole proprietor you are vulnerable
to legal action taken against your company.

Start a business as a L.L.C. (Limited Liability Corporation) instead. This will
eliminate the risk of loosing personal funds due to allegations in a lawsuit.

Intellectual Property Issues - Even low-tech companies have intellectual proper issues
that directly affect the long-term success of the business. Pay close attention to
confidentiality and invention assignment agreements, registered trademarks, and
copyright notices. Protect the company's trade secrets adequately.

If you don't want problems with the IRS, good record keeping and accounting is
essential. You can cause serious problems for yourself and your company if you don't
keep records of all business transactions.

You may want to hire a bookkeeper or accountant to deal with accounting issues. If
you can't afford to do so be sure to take a course on business accounting to ensure you
have proper records of everything.

At some point you may need to consult with an experienced corporate attorney. While
most attorneys do charge a high fee, there are many situations where it may be
necessary to do so. Sometimes there's no substitute for professional advice.

Choose an attorney that you're comfortable with and can afford. It is important to
build a relationship with your attorney so that in times of need he or she will better
understand your situation.
Did you find this article useful? For more useful tips and hints, points to ponder and
keep in mind, techniques, and insights pertaining to credit card, do please browse for
more information at our websites.

								
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