It is important for business owners to reflect on mistakes and shortcomings that transpired during the previous year. One of the central considerations is how legal issues can be avoided. According to one report, 58 percent of small businesses had to handle some type of legal issue in 2013. Taking proactive steps to increase a business’ legal defenses does not have to be a costly endeavor. By avoiding situations in which legal issues can arise, you can actually save your business a significant amount of money and hassle. Here are a few steps to take for a brighter future for the rest of the year.
Incorporate Your Business
Even though the New Year has started, you can still file for a delayed-effective filing date for January 2014. Using this strategy can mean that you will not have to pay a yearly government tax for only a few weeks or months of service. Additionally, you can get your business incorporated in a more rapid manner. You will also gain additional time to sort through documentation to assist you with the process of incorporating your business, which can provide you with a legal wall regarding your personal liability.
Use Written Contracts
About 40 percent of small businesses indicated that they had some sort of legal problem pop up with a contract in 2013. These issues often included negotiations or failing to collect on payments due. Therefore, any agreement should be in writing that clearly specifies the work that is to be completed. Additionally, customers should have clear and concise language regarding payment plans, including the following:
Include a second contact on contracts so that you have another person or method of reaching the customer with the invoice. Any contracts with vendors should also provide key terms and satisfy all requirements of a legally binding contract. Additionally, any modifications in the contract should also be clearly spelled out in writing.
Seek Legal Assistance
Sometimes having an attorney to rely on can help make the difference between whether a business succeeds or fails. However, not every small business can afford to have an attorney on retainer. Using online legal services can help you mitigate the cost of some legal expenses and allows you to keep reserves for the times when you really need legal counsel.