Keeping a small business running smoothly takes a lot of time and effort. It is not for the lazy or faint of heart. In my post, Why The Most Tedious Business Tasks Can Make Or Break You, I mention a few of the many hats you have to wear as a small business owner. You may have to serve as the accounting or human resources manager, as well as the CEO. It can be a little overwhelming and, without any help, some critical things can fall through the cracks. When this happens, you leave your company vulnerable to legal troubles. To save some money and time, here are a few tips you can follow and avoid potential legal troubles.
Know Your Labor Laws
This is, by far, is one of the most important tips. Your business could expand, and you could find yourself hiring your first employee. You do not want to start recruiting team members without knowing your labor laws. These laws include statutes that govern the minimum amount an employee must be paid, how long they can work, and when employees must be paid, to name a few. Labor laws also cover topics like overtime pay, what a standard workweek looks like, and when an employee’s final paycheck is due when terminated. These are all important things you do not want to violate when you make your first hire. To make sure you do not make any mistakes, consider working with business attorneys like Scheid Cleveland, LLC, who practice preventive law. They help business owners from startup through the life of your business.
Make Sure Everything Is In Writing
Whether you are hiring someone, doing business with another company, or having maintenance work done, get it in writing. Getting it in writing applies to many aspects of your business, from the lease agreement for your office space to hiring a cleaning service.
Asking for things in writing does not mean that you are not trusting. It just means you are protecting yourself and the individuals you are working with. When you close a deal, get the finalized deal in writing just in case things do not go as planned. If you are not sure how to prepare the documents, you may want to hire a lawyer. Click here to see how business and commercial litigation lawyers can assist you and consider working with one in your area.
Keep Great Business Records
You want to make sure you keep good financial records. You need to track your cash flow and know just where and how the income is being utilized. This allows you to analyze your cash flow and do an accurate financial forecast. For you to do this, you have to make sure you have proper documentation. You want to document all the money that comes in and everything that goes out. This includes supplies, utilities, and payroll taxes. You will need the information when preparing your business taxes each year.
If you do not include allowances for payroll taxes in the pricing of your services or somehow pay your taxes late, you could wind up in legal trouble. The continuation of tax oversight is not a good habit to have. Your business could eventually wind up in shambles, and that would be tragic.
In addition to keeping accurate and well-documented financial records, it is also essential to have all the licenses and regulations required for your particular business. If your company ever has to face an audit or a lawsuit for any reason, you will be required to produce the licenses. You will also be held accountable for any pertinent regulations you should be aware of.
By spending a little time learning and understanding the applicable laws for your business and keeping excellent records, you can avoid a lot of legal troubles. You don’t want to have to close the doors of your business over something that could have been easily avoided. Here’s to YOUR success!
Carolyn R. Owens has over 25 years of proven experience and serves as a Career Strategist, Executive, and Leadership Coach. She is the President of Infinity Coaching, Inc., where she can help you up-level your skills so that you can up-level your income, career, business, or life. Infinity Coaching, Inc. provides organizational training and one-on-one and group coaching. Carolyn is certified to give both The Energy Leadership Index Assessment and Myers Briggs Type Indicator Assessment. You can find out more about both assessments and other products and services at https://infinitycoaching.net.
