When running a business, there are plenty of potential pitfalls and risks that can damage or even destroy your company. If you end up on the wrong side of the legal system, you could be subject to fines, lawsuits, or even more serious consequences.
This article will provide a few suggestions to help you keep your business legally protected.
Health and Safety
If someone is injured at the workplace, there are consequences for them and the company. Obviously, the injured party might be unable to work and they will have medical bills. But your company is responsible for people when they’re on-site.
If the injury was caused by negligence or another issue that could have been prevented, the injured party is under every right to sue your company, especially if they have to deal with pain and suffering as well as a loss of income.
Proper health and safety guidelines don’t just protect your employee’s wellbeing, but they also protect your company.
Local Legislation
It’s always good to be aware of local legislation and guidelines, especially because these can change over time and in different areas. For example, the corporate transparency act was enacted to prevent money laundering and fraud, but has recently been ruled unconstitutional.
By keeping abreast of the changes in laws and legislation and making sure you’re always up to date, you can keep on the right side of the law.
Corporate Lawyers
Obviously, business owners aren’t all lawyers by trade, and because you’re focusing on your business and your industry, you might not be aware of all of the changes to laws that can affect you and your business.
This is why it’s a good idea to have an attorney involved in your business. You can consult the attorney on potential business decisions that might have a legal impact on your company. If you do end up involved in a court case, a corporate lawyer can ensure that your interests are properly defended.
Always keep a good paper trail and good records and make sure that legal documents are always overseen by an attorney before you sign them.
Tax Returns
Speaking of keeping good records, you should consider outsourcing your financial records to a bookkeeper or an accountant.
One of the most common mistakes that a small business owner can make is to incorrectly fill out a tax return. If you don’t keep good financial records, it’s much harder to be accurate when logging your income and expenses. This can mean that you overpay your taxes or, even worse, underpay and end up having to pay fines to make up for it.
The cheaper option is often to outsource to a professional, because they can make sure your taxes are filed correctly and promptly. Even better, they might help you get certain tax breaks or grants that your company is eligible for. This means that you can save money and put it to better use in the next financial year.