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Advice on How to Handle Common Legal Issues Faced by Small Businesses Featured

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Small businesses are the key economic drivers that provide employment opportunities for millions and help boost local economies. However, while talking about this kind of business is fun, owning one comes with its fair share of challenges, including dealing with legal issues. Below are some pieces of advice on how to handle common legal issues faced by small businesses.

  1. Contract disputes

One of the most common legal issues small businesses face is contract disputes. A contract is an agreement between two parties. If one party breaches the contract, it can lead to a dispute. If you want to avoid contract disputes, you must have a well-written and detailed contract that clearly outlines the obligations and responsibilities of both parties.

In case a dispute arises, you should review the contract and gather any evidence supporting your case. Furthermore, it would be best to consider mediation or arbitration to resolve the dispute before you can go to court. If the disagreement cannot be resolved through alternative means, finding a good lawyer to represent your business in court may be necessary.

  1. Employment issues

Employment-related issues like discrimination claims, wage and hour disputes, and wrongful termination claims are other challenges that small businesses encounter. To take your business to the next level and avoid employment issues, you must have clear policies and procedures that comply with federal and state employment laws.

In case of an employment issue, a thorough investigation should be conducted on the claim and appropriate action taken. Some of these actions may involve discipline, employee termination, or settling the claim outside of court. You should have a lawyer knowledgeable in employment law to advise and represent your business in legal proceedings.

  1. Intellectual property disputes

Small businesses often face intellectual property disputes that mostly arise from trademark or copyright infringement claims. As a business owner, you should try as much as possible to avoid these issues. To do so, you must thoroughly search existing trademarks and copyrights before using any branding or content that may be similar to existing trademarks or copyrights.

If a dispute arises, you should consult a lawyer specializing in intellectual property law. Lawyers can help you navigate the complex legal issues surrounding intellectual property and protect your business from potential liabilities.

  1. Business formation and structure

When starting a small business, you should always start on the right footing by choosing the right business structure. Additionally, you should ensure that you comply with all state and federal laws. This may involve registering your business with the state, obtaining necessary licenses and permits, and complying with tax obligations.

As a new business owner starting a business for the first time, you may face problems coming up with the best structure. If this is the case, it is important to consult with a lawyer who can advise you on the advantages and disadvantages of each structure. A lawyer can also help you navigate the legal requirements for starting and running a business.

  1. Debt collection

Money is the backbone of every business. Sadly, every business at some point will sell at a credit. This leads to issues with debt collection, particularly when dealing with customers who are slow to pay or refuse to pay. To avoid these issues, it is important to have clear payment terms and follow up with customers with outstanding balances.

You should have a lawyer specializing in debt collection to guide you if issues arise. A lawyer can also help you navigate the legal process of recovering debts and protect your business from potential liabilities.

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Scott Koegler

Scott Koegler is Executive Editor for PMG360. He is a technology writer and editor with 20+ years experience delivering high value content to readers and publishers. 

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