It can be difficult to make your business work and protect it from potential legal issues. It’s important to take steps to make sure your business is legally protected so that you are not faced with any problems down the line. Here are some tips to help you ensure that your business is legally protected.
1. Register For Tax Purposes
Registering your business for taxation purposes is an important step in legally protecting your business. This allows you to be held accountable for any taxes that you owe and ensures that the government is aware that you are a legitimate business. In addition, registering for taxes allows you to legally protect yourself in the event of an audit or investigation. In 2017, almost 120,000,000 individual refunds were made, with many of them facing audits, so registering for taxes is an important step in making sure your business is legally protected.
2. Secure Your Trademark or Copyright
Securing a trademark or copyright for your business is another great way to legally protect yourself and your business. A trademark allows you to be protected from someone else using or attempting to use your company’s name or logo for their work or business. It’s also vital to make sure you are not infringing on someone else’s copyright so that you are not liable for any potential legal issues. Working with a trademark or patent lawyer can help you avoid any copyright and trademark issues, as can properly registering all of your logos, products, and services.
3. Understand Employment Laws
It’s also important to understand all of the laws that apply to your business when it comes to hiring and managing employees. Knowing the laws in your state or country will ensure that you are legally protected when it comes to hiring, managing, and compensating your employees. Make sure you are abiding by all of the laws and that you don’t violate any of them, as this could result in a lawsuit or other legal issues.
4. Hire Trusted Staff
Similarly, it’s crucial to hire only trusted staff to work for your business. Hiring ill-trained staff or those with a history of embezzlement can be disastrous for your company. Embezzlement is a type of white-collar crime where someone mismanages financial assets that they are in charge of, and uses these assets in an unauthorized way. From the moment you begin to look for employees, make sure they are qualified and trustworthy.
5. Hire an Accountant
There might be many tax laws and financial obligations you’re unaware of as a new business owner. For instance, corporations with $10 million or more in assets are required to electronically file their 1120/1102S income tax returns. This is just one reason why it’s important to hire an accountant or other tax professional who can help you understand and manage your taxes properly. Doing so will help ensure that your business is legally protected and that you are not facing any potential issues related to taxes.
6. Create a Terms and Conditions Agreement
Creating a terms and conditions agreement is an essential part of ensuring your business is legally protected. A terms and conditions agreement sets out the rules of engagement between you and your customers, as well as any other relevant information such as warranties and returns. This document should be legally binding and includes important information such as the process for refunds or exchanges, delivery times, payment terms, and other important information. Having this document in place will help ensure that you are legally protected in the event of a dispute or legal issue.
These are just some tips for legally protecting your business. It’s important to understand the laws and regulations that apply to your business, as well as the best practices for creating agreements. If you need more advice, contact us today for help!