Small Business Legal Health
Any business takes on legal issues beyond merely getting the business license. While laws and requirements vary among states and municipalities, the following general areas of legal concern affect most small businesses.
Corporate Status
A corporation, whether just an LLC or larger, must comply with different regulations than a partnership or sole proprietorship. Owners of enterprises established without incorporation still need to know legal options for all enterprises. The day may come when incorporation becomes a reasonable choice.
Regulatory Compliance
If your business uses chemicals, serves prepared food, or hires drivers, federal and state regulations apply to all of these things, and more. You need to know any regulations applying to your business, and have protocols in place to assure compliance.
Financial and Accounting Regulations
Financial and accounting laws apply most to businesses in the finance industry, but in some degree to all businesses. Who you have for clients may also bring additional regulations.
Labor Laws
Labor laws differ with the number and nature of employees. Regardless of staff size, failure to establish records of compliance with workplace safety, fairness in hiring, sexual harassment, and even break times can cost you.
Liability
Owning a business makes you legally accountable for what you sell, actions of officers and employees, and facility conditions. A loose nail or icy step that results in injury could cost your whole business. In today’s world if you even inadvertently transfer a computer virus to a client or supplier, you could end up facing a lawsuit.
Contracts
In many small businesses the only terms of whether or not work is complete and payment is justified depends on the wording of contracts. You need to be certain that both your contracts and those you consider from others are clear, unambiguous, and legally valid.
Errors and Omissions
Some contractors require error and omission insurance to qualify for their business. Smaller unincorporated firms that cannot afford it directly may get allowance by having an inexpensive personal liability rider on their home or rental insurance policy.
Exit or Succession Strategies
Your regular customers may depend on your business, and your extended family may depend on its income. If you intend your business to continue after you retire you need legal advice on the best ways to assure effective transition of leadership.
Small Business Law | Attorney | Richmond, Virginia
