Common Legal Issues Your Small Business Might Face

Congratulations are in order now that your business is up and running. While that’s a huge deal, you will quickly discover that the world of entrepreneurship is riddled with many legal challenges. Statistics show that up to 53% of small businesses face lawsuits yearly. While battling any legal issues might be time-consuming and expensive, you must know they are likely to occur. To stay one step ahead, here are some common legal issues you must expect, including how to deal with them effectively.

Employee termination

Once you start hiring employees for your business, you must expect to deal with a myriad of employee-related issues, including legal ones. Hiring employees is tricky. You can hire someone who appears to be the perfect candidate, but you will quickly realize that you are losing money with them. Or maybe they don’t fit in with your business’s culture. In some cases, you might even lose the best employee. 

Whatever the case, it’s always good to lessen your risk of any legal repercussions. One of the best steps to take when you start hiring is to create an employee manual that specifies certain actions that are grounds for dismissal. It should also cover any job termination and resignation procedures. If you’re unsure how to create such a policy, it would be best to work with a legal representative. 

Defamation or business disparagement

Your business’s reputation is extremely important to its success or failure. With the advent of social media and other communication channels, it’s very easy for users to make harmful or false comments to the detriment of your business. 

If someone makes a false claim about your business, you can choose to either file a defamation lawsuit or a business disparagement claim. The difference between the two is that the former deals with your reputation while the latter addresses your business’s economic interest. A defamation lawyer will guide you through the process.  

Licensing and trademarks

One of the most common issues you might face with your small business is licensing and trademarking. To avoid fees, you must ensure that your business runs per local or state regulations. You can consult your local licensing agency or seek assistance from your lawyer or accountant. 

For trademarks, you must conduct a lot of research, especially when you are naming your business or launching a new product. It’s common for people to have your business or product name, so if you’ve thought about it, you need to research as thoroughly as possible to be clear. Trademark infringement can create serious legal issues, even if you didn’t mean to “steal” another business’s image. 

Many modern small businesses rush to get established, creating several legal issues that could block their growth. As a business owner, it’s always an excellent idea to anticipate such issues from occurring to avoid any future lawsuits. And remember, if you are in doubt, seek guidance from a legal expert to keep your business affairs in order. It’s always good to be prepared for the worst.