More than 4.4 million new businesses emerged during the pandemic in the USA alone. This means that millions of inspired business owners put their mind into creating the best products/services, implementing marketing strategies, and building a strong brand including legal logo and handcrafted packaging.
But that’s not it. Opening a startup business lies in legal and financial hurdles as well. This means that whether you are a seasoned or a brand new business owner, you have due diligence to understand legal rights and obligations, as well as know the different legal advice for small business.
Legal issues can arise at any time, from hiring employees to creating contracts with suppliers, and without the right legal advice, small business owners can find themselves in hot water. If you want to get out of it, keep on reading as we unveil the best legal advice for small business owners.
Importance of knowing the rights of business owners
Running a business is no ordinary feat. It’s embarking on a life filled with challenges, triumphs, and everything in between. And just like any other person in this world who knows how to solve a problem, a business owner must know their rights to navigate commerce with confidence and success.
Be it a legal battle, protecting your products/services, and struggling with unjust treatments, here’s why you should know your right as a business owner:
- It provides you with a solid foundation to make informed decisions.
- Allows you to confidently negotiate contracts, establish fair employment practices, and protect your property.
- Enables you to effectively manage any disputes or conflicts that may arise.
- Make sure that you are in full compliance with the law.
- Fosters a sense of responsibility and accountability.
Keep in mind that an entrepreneur must invest enough time to know the ins and outs of their business, and that includes the legal framework and rights. Doing so not only allows you to dodge pitfalls but also protect your hard-earned money with the power of knowledge. No sudden surprises here!
Legal Advice for Small Business Owners
Now that we’ve established the importance of knowing your rights as a business owner, below are some of legal advice for small business you need to remember to be able to navigate the complex legal landscape.
- Know the right business structure for you
The business structures are sole proprietorship, partnership, LLC, and corporation. Knowing the right type for your company largely impacts the liability, taxes, and operational requirements. But since we’re talking about a small business here, it’s more likely that you own a sole proprietorship consisting of 1 primary owner and 2 to 3 employees.
In the United States, a one-person business doesn’t have to be registered with the law in order to exist. But there are still minimal startup costs and some tax perks to keep track of.
- The power of an attorney to draft a contract
Think of a contract as a cape, ready to protect your business to any financial hazards that may arise. You see, if a well-drafted contract prepared by an attorney sets clear expectations and defines the right of your small business.
- Protecting your intellectual property
Just as you would brainstorm new product ideas and services for your business, take the time to also think of many ways to protect your intellectual property as a legal advice for small business. After all, safeguarding your creations to those with sharp eyes is also setting your small business up to success.
- The employment law and regulatory compliance
In Texas, you have to acquire a private investigator’s license to repair a computer. Failure to do so subjects you to a $4,000 fine and one year in jail. This state law is one of the uncanny rules and regulations in the world and unfortunately, many small business owners fall into it.
With this in mind, another legal advice for small business is to ensure that you stay compliant with employment laws and be aware of industry-specific regulations. Reading and doing your due diligence to research (especially if your business operates across borders) are very important too.
- Taxation, permits, and licensing
From understanding deductible expenses to filing timely returns, you can spin through the tax season with confidence as long as you know what you’re getting into. When it comes to permits, however, these documents are like pieces of puzzles that bring you closer to legally operating your small business.
For instance, if you are operating a restaurant, you need permits like health permits, food handling certifications, and even liquor licenses. If you fail to get these permits, hefty fines, legal complications, or forced closure of your business are waiting for you.
To make matters more interesting, here are some of the common business licenses and permits for your small business:
- Local Business License
- Peddler’s License
- Occupational Licenses, Permits and Certificates
- Cleaning or Janitorial License
- Vendor or Sales Privilege License
- Gardening and Landscaping Business License
- Food Business, Restaurant and Food Truck Licenses
- Liquor Licenses
- Tobacco Licenses
- Health Permits and Licenses
- Contractor and Tradesman Permits
- Fire Inspections and Permits
- Beauty Salon and Cosmetologist Licenses
- Building, Planning and Zoning Permits
Remember that you don’t have to fill in all these permits and licenses because what you need to acquire are only the ones that apply to your business.
- Data protection and insurance
Another legal advice for small business is data protection. Data protection ensures that your business has the proper security measures in place against data breaches and unauthorized access. Familiarizing yourself with relevant data protection laws like the General Data Protection Regulation (GDPR) not only helps you as an entrepreneur but also strengthens your business.
Insurance, on the other hand, is for accidents, natural disasters, and legal disputes. It’s a shield that protects you from potential risks and financial strain including bankruptcy and debt.
- What will you do if you face bankruptcy and debt?
If your small business haplessly faces bankruptcy and debt, the first thing you should do is to take a step back and assess your financial assets. Doing so will allow you to pick up some pieces or areas where you can make adjustments and pay your debt.
Now, if that didn’t work at all, you can seek legal advice from professionals who specialize in bankruptcy and debt. Many countries including the USA offer legal aid societies and pro bono attorneys to help you get out of the situation without cost.
Final Thoughts
We believe that your small business can achieve long-term success! Especially if you take advantage of this legal advice for small business and familiarize yourself with changes relevant to your industry. It’s also important that you focus on growing your business digitally by benefiting from AI-powered tools like Logomakerr.ai. This tool allows you to generate multiple logos for your business with thousands of pre-designed templates, fonts, symbols, and colors to choose from!
Stay informed, protected, innovative, and best of luck on your entrepreneurial journey!
