Legal Tip of the Week: Most Common Legal Omissions that Businesses Make

Legal Tip of the Week: Most Common Legal Omissions that Businesses Make

As a small business attorney, I am often asked what are some of the most common legal omissions that businesses make. Here are just a few pitfalls that owners should be aware of!

Failure to Choose the Right Business Structure

Choosing the appropriate legal structure (e.g., sole proprietorship, partnership, LLC, corporation) is crucial. Failing to do so can affect liability, taxes, and operational flexibility.

Lack of Proper Contracts

Small businesses sometimes neglect to create written contracts for employees, contractors, clients, or vendors. This can lead to misunderstandings, disputes, and legal liability.

Ignoring Intellectual Property

Not protecting trademarks, copyrights, or patents can result in the loss of valuable intellectual property rights or legal disputes with competitors.

Noncompliance with Employment Laws

Small business owners often fail to adhere to labor laws related to minimum wage, overtime, employee classification (e.g., exempt vs. non-exempt), or workplace safety.

Inadequate Record-Keeping

Poor financial record-keeping can lead to tax issues, audits, or difficulties in proving financial stability to lenders or investors.

Contact us with any questions about common legal omissions that businesses make

Fear not! Hoffman Law Offices is here to help! Call us at (205) 837-5791 or email us at whoffman@hlawoffices.com to schedule a consultation with our team.