7 Big Legal Mistakes Made By Startups
If you're a business owner, chances are that you don't know everything about the law. The intricacies of legal matters can be confusing and overwhelming for even the most seasoned professionals. This is why many entrepreneurs seek help from an attorney when they need it - to make sure their interests are protected and they avoid costly mistakes.
Your business can't grow and succeed without properly understanding the legal risks it faces. The following are some of the big mistakes made by startup businesses, straight from an experienced Maryland business attorney:
1. Not clearly understanding the company's legal needs.
Not clearly understanding the company's legal needs can lead to big problems later. Before you start a business, you must have a clear understanding of your legal needs. This includes forming a corporation or LLC (limited liability company) and registering with the IRS, as well as meeting any local state requirements for running your businesses.
2. Neglecting to have an attorney review contracts before signing them.
Protect your business investments by having an attorney review any contract before you sign. This ensures that you know what the contracts are saying and also protects yourself from future legal issues regarding breach of contract or other legal matters.
3. Failing to understand how intellectual property law impacts their business.
Many business owners don’t fully understand how intellectual property laws that protect copyrights, trademarks, trade secrets, and patents apply to their business. They may not even realize that they are at risk of losing the rights to their work, or worse yet, facing costly lawsuits from companies who think they own your work!
4. Thinking they can handle all legal matters themselves without assistance from outside counsel or advisors.
Maryland business owners are constantly bombarded with legal issues that can have a significant impact on their business. But they don’t hire attorneys to deal with these matters because they think they can handle these matters themselves without assistance from outside counsel or advisors. The result is that many of them make mistakes that could cost them dearly in the future if not corrected now! And even worse yet, some of them end up getting sued over an issue that could have been avoided altogether had it been handled properly by experienced legal counsel.
5. Neglecting to register your company with the state or country where it is based.
When a business is established, it must be registered with the state or country where it is based. Failing to do so can result in severe penalties and fines. Many small businesses are unaware of this requirement and pay for their ignorance by getting hit with hefty fines.
6. Ignoring legal requirements for hiring employees.
Not following legal requirements for hiring employees can lead to serious consequences. Ignoring the law can cost you thousands of dollars in fines and penalties, not to mention being sued by a former employee or having your company’s reputation damaged.
7. Skipping out on taxes and insurance.
When it comes to paying your taxes and carrying the right amount of liability insurance, it is important that you follow all applicable laws. You could face harsh penalties if you do not comply with these regulations—including fines and even jail time in some cases.
Maryland Business Attorney Steve Thienel can help you with any legal matter that will affect your company's success and growth. With over twenty years of experience, he has helped countless businesses in all industries from start-ups to Fortune 500 companies navigate through complicated legal issues and avoid costly mistakes. If you're looking for a seasoned attorney who knows how to get results, contact him today.
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