Owning a successful small business is exciting and demanding.  It certainly comes with a lot of legal and financial responsibilities.  Here are attorney David Soble’s a quick guide on the top 10 things to know when launching and operating a small business to avoid any legal or financial trouble:

1. Pick the Proper Business Structure: Whether your company should be organized as a corporation, LLC, sole proprietorship, or partnership can have a big impact on liability, taxes, and regulatory compliance. To ascertain which course of action is best for your particular circumstances, speak with an attorney.

2. Acquire the Required Licenses and Permits: To lawfully operate your business, find out which licenses, permits, and registrations are needed, then get them. Depending on your sector and area, these could include zoning permissions, business licenses, health permits, and professional licenses.

3. Protect Intellectual Property: To prevent infringement and unlawful use by competitors, protect your business's intellectual property, which includes patents, copyrights, and trademarks. For further protection, think about registering your copyrights and trademarks with the relevant government agencies.

4. Write Clear Contracts And Agreements: For every company transaction, including those involving clients, vendors, employees, and partnerships, draft formal contracts and agreements. To prevent miscommunications and conflicts, clearly state each party's expectations, rights, and obligations.

5. Respect Employment Rules: Become knowledgeable about the federal, state, and local rules pertaining to employment that control things like overtime compensation, minimum wage, employee classification (such exempt vs. non-exempt), anti-discrimination, and workplace safety. Make sure you abide by these laws to prevent expensive fines and legal action.

6. Safeguard Sensitive Consumer Data: Adhere to privacy laws by putting strong data protection procedures in place. Prior to gathering and utilizing personal information, get consent. Also, protect client data from breaches or unwanted access.  Using third party service providers to protect important data is a great way to shift liability for data protection.  It also allows better access to state of the art data protection that banks and other large companies rely upon. 

7. Respect Your Tax requirements: As a small business owner, be sure you are aware of all of your tax requirements, including payroll taxes, sales taxes, income taxes, and any taxes or deductions unique to your industry. To maximize deductions and reduce liabilities, maintain correct financial records, file tax forms on time, and consult a tax accountant or advisor for professional help.

8. Maintain Accurate Financial Records: Set up good accounting procedures and preserve thorough records of all business financial transactions, including receipts, invoices, income, and expenses, as well as bank statements. Review financial reports and reconcile your accounts on a regular basis to keep an eye on cash flow, profitability, and tax compliance.

9. Keep Abreast of Legal Updates: Stay up to date on any changes to industry standards, rules, or regulations that might affect how your business operates. Subscribe to relevant newsletters, join industry associations, and consult with legal or regulatory experts to ensure ongoing compliance and mitigate legal risks.

10. Seek Legal and Business Advice When Needed: Don't be afraid to ask knowledgeable attorneys with experience in  business law for advice when dealing with complicated legal matters or concerns. Long-term corporate interests can be safeguarded and expensive legal issues can be avoided by making an upfront investment in legal guidance.  This is true for when seeking out the advise of other professionals as well:  bookkeepers, accountants, business advisors, attorneys, controllers, etc.  

If you follow these top 10 items, you can reduce the likelihood of being entangled in legal issues and concentrate on strategically expanding your small business by proactively addressing legal problems and abiding by relevant laws and regulations.  Contact David Soble and the Associates at Soble Law for your business and real estate and contract needs.