Having legal issues and being involved in litigation can be expensive for a small business, and also affects the business’ reputation. Do what you can to avoid legal issues as much as possible. Here are some tips on how to avoid business legal issues from our expert business law attorneys in Frisco, TX.
Keep Proper Records
Whether you are planning to have investors or sell your business, having proper records in place is important. Moreover, these records help potential investors and buyers understand everything about the business, such as the stake offered to the investors and the debt accrued by the company.
Corporate records for small businesses reduce the event of lawsuits and litigations since all the finances are clearly defined and noted. Keeping all necessary documents for a particular purpose, such as sales contracts, lease agreements, partnership agreements, etc., is essential. These documents can be used later in case of any dispute between the parties involved.
Separate Yourself from Your Business
Many small business owners run their companies as sole proprietorships. However, it can be problematic if the business gets sued because the owner’s personal assets, like their home and car, become targets.
One way to curtail the possibility of facing legal issues is by forming a trust for the business. A trust is a legal entity that, in most cases, files its own tax returns and owns the company property. If a small business with a properly established trust gets sued, the only assets that can be targeted are the assets owned by the trust.
In a nutshell, separating yourself from the company will help you avoid common legal issues many small businesses face.
With the help of an experienced business attorney from The Margolis Law Firm, you can establish a trust for your business. Our business law attorneys can also help draft business contracts that define the roles and liabilities of the partners and other people associated with the business.
Use Written Agreements
Contracts and written agreements protect a business from potential lawsuits. From hiring employees to buying from a vendor, every business activity that you carry out must have a proper contract in place in order to protect your rights.
The written agreement can be prepared by a commercial law lawyer, your staff, or you as the business owner. Whatever the case, ensure you know what type of terms you want to include in the contract.
It’s recommended to hire business lawyers that can draft detailed contracts explaining the roles and responsibilities of you and other parties. This ensures that everyone knows their obligations in case things go wrong.
Get All Mandatory Licenses and Permits
Not having the required licenses and permits can make a business vulnerable to legal issues. For example, businesses that offer hair-cutting services must have a barber shop license, or else the authorities or customers can file a lawsuit against them.
The process of obtaining licenses can be complicated, especially for small business owners that have to take care of their business operations as well. You can hire experienced attorneys from The Margolis Law Firm in Frisco, TX to help file paperwork to obtain the required licenses on your behalf.
Register Intellectual Property
Registering intellectual property is essential for every business to protect its assets. If not registered, employees can share/sell intellectual property, such as unique product ideas, which may damage your business.
Dealing with such employees can lead to business litigation, which ultimately hurts your company. By registering your copyrights and trademarks, you can clarify your intellectual property ownership.
At The Margolis Law Firm, a committed Texas business attorney can help you register your understand what needs to be registered and when to register. With our team supporting you, you will be able to navigate the nuances of business law with ease and confidence.
Obtain Legal Advice
Businesses should avoid “winging it,” especially when it comes to making any legal decision. If you are unsure about the contract offered by investors or how to respond to a legal claim, it would be wise to hire a small business lawyer – Dallas/Ft. Worth metroplex local – to review and discuss your legal needs.
Similarly, you should take legal advice from professional attorneys for almost every business activity. By seeking legal advice, you can avoid potential lawsuits.
Keep Your Business Protected From Legal Issues with the Margolis Law Firm
Legal issues can cost your business thousands of dollars and may impact its reputation. With the right Frisco business lawyer by your side, you can ensure your business remains protected from any legal disputes or litigations.
The Margolis Law Firm is an established law firm preferred by all-sized businesses in Frisco, TX. Our dedicated legal team helps business owners form their corporate structures, draft contracts and partnership agreements, defend against legal claims, and much more.
Call us at (972) 294-0200 or reach out online to schedule a free consultation with one of our business attorneys to discuss real estate law in Texas or any pending business disputes.