As the owner of a small business, you have to wear many hats. Some of the tasks you have to do may fall outside your comfort zone or be things you do not even know how to do. If you begin making mistakes in the operation of your business, you could end up with legal issues and potentially ruin your chances of business success.
Make note of these mistakes to help you as you start up your business.
Not knowing tax laws
It is a huge mistake to ignore your business tax obligations. Taxing agencies will always find you and make you pay. Not only will you owe the original amount, but these agencies will add on many fees and fines. Not handling your tax obligations correctly is a costly mistake.
In today’s world, the collection of information is at an all-time high, and even though customers will often hand that information over to you willingly, you still need to let them know what you will do with that information. If you sell your email lists, for example, it could prevent people from doing business with you in the future or lead to legal troubles. You need to let people know upfront what you will do with their information.
Not choosing the right structure
It is important to make sure you choose the right business structure. The formation of your business structure will dictate many details about your business. If you choose the wrong one, you will either create needless work for yourself at the get-go or cause issues for yourself down the road. Take time to make this decision because it is important.
Not hiring an attorney
Not having legal counsel on call is a mistake. In the beginning of your business, you will have legal issues that you need to ensure you handle properly. Thinking that legal needs are something you will only have once your business is running can set you up for trouble.