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What are some common legal issues that small businesses typically encounter?

Picture of Chris Battis By   ·  1 minute read

As a lawyer, I can advise that there are several common legal issues that small businesses typically encounter. These include:

  1. Contract disputes - Small businesses often enter into contracts with vendors, suppliers, customers, and employees. Disputes can arise if there is a misunderstanding of the terms of the contract, if one party fails to perform, or if there is a breach of contract. To avoid these disputes, it is important for small businesses to have clear and concise contracts that are reviewed and approved by a lawyer.
  2. Intellectual property infringement - Small businesses may unintentionally infringe on the intellectual property rights of others by using copyrighted material or trademarks without permission. Small businesses should conduct due diligence in ensuring that they are not infringing on the intellectual property rights of others.
  3. Employment disputes - Small businesses may encounter issues with their employees, including wage and hour disputes, wrongful termination claims, discrimination claims, and harassment claims. It is important for small businesses to follow all federal and state employment laws and to have an employee handbook that outlines the policies and procedures for addressing these issues.
  4. Tax issues - Small businesses may have tax issues related to payroll taxes, income taxes, and sales taxes. It is important for small businesses to have a clear understanding of their tax obligations and to seek the advice of a tax professional if needed.
  5. Compliance issues - Small businesses may encounter compliance issues related to environmental regulations, data privacy laws, and industry-specific regulations. It is important for small businesses to understand the regulations that apply to their industry and to ensure that they are in compliance.

In conclusion, small businesses can encounter a variety of legal issues, but there are steps they can take to minimize their risks. These include consulting with a lawyer to draft contracts and policies, conducting due diligence related to intellectual property, following all employment and tax laws, and staying informed about industry-specific regulations.