Common Legal Challenges You May Face As a Business Owner
While owning and operating a business can be a rewarding endeavor, it’s one that’s often plagued by complex legal issues or battles. As a business owner, it’s imperative that you do everything in your power to protect your business from these problems. However, it’s also essential that you take the time to understand how to defend yourself should any issues arise. This article will take a closer look at some common legal challenges you may face as a business owner and how you can be prepared to face them head-on.
Properly filing your taxes is a crucial action for every business. Failing to do so can have a significant impact on your business and may put your organization at odds with the IRS. According to The Balance, the IRS has the power to audit any business tax return up to three years after it has been filed and may collect upon back taxes owed for up to 10 years. To help your business avoid these audits, it’s important to work with an experienced financial advisor or accountant when filing. This will ensure that your business’s information is accurate and prevent any issues from arising with the IRS.
Intellectual Property Protection
If your brand utilizes something that makes it unique, it’s important to take the time to protect it. For example, if you hired an artist to create an image for your company, take the time to copyright the image so other businesses can’t use it for their products or campaigns. According to Legal Zoom, copyright on an image lasts throughout the artist’s life and an additional 70 years after their death. This will guarantee that your business can stand out amongst the competition without fear of other businesses trying to pull attention away from your products or campaigns. Be sure to seek legal guidance throughout this process so it goes as smoothly as possible.
The larger an organization grows, the more difficult it can be to handle minor issues before they’re able to grow into larger and more significant problems. Some issues with your consumers may grow to the point where they hire a lawyer to try to take your business to a courtroom. According to a study by the Small Business Administration (SBA), every year, between 36% and 53% of small businesses deal with lawsuits. In order to keep the impact of a lawsuit to a minimum, it’s essential that you have one or more legal representatives ready to defend your business. Make sure you hire ones that have a track record of successfully defending business owners.
If you own a small business with a brick-and-mortar location, you may face issues with people harming themselves on your premises. Whether it’s from a slip and fall or from a ceiling tile falling on someone, you will be held responsible as the property owner. In order to avoid disastrous legal consequences, it’s important that you choose an insurance policy for your business that can help you cover the costs of incidents such as these. Additionally, hire professionals to inspect your property every so often to ensure that there are no issues that may cause harm to anyone entering your premises. The more proactive you are in preparing for these problems, the easier it will be for your business to navigate them.
Legal battles and hurdles can have a profound effect on your business. Some may leave you struggling to get by and others can make you close your business’s doors. As a small business owner, you need to make the time to prepare for problems and reach out to the right professionals for support. Take action today so your business can survive to see tomorrow.