The last thing any small business owner wants to face is legal issues that could jeopardize the future of their business. After spending so much time and energy, growing your company from the ground up, it would be a hard blow to have that ripped away from you. No one wants to spend their profits on litigation or other legal matters.

By taking into consideration the most common legal issues a small business owner faces, you can take the necessary precautions to protect your business and your assets from devastation. Here is a list of the most common legal issues you will encounter.

Licensing

Licensing is one of the most common legal issues small businesses will encounter. To avoid any troubles, make sure you follow your local and state law requirements. Licensing fees will vary from state to state, and depending on your business type, you may need additional licenses. Not being in accordance can leave you with some hefty fines and fees.

Business structure

Selecting the wrong business structure can leave you with legal problems and can damage your business. For tax purposes, it’s critical that you choose the appropriate structure for your business. The most common business structures include sole proprietorship, partnership, LLC, C-Corp, and S-Corp. Make sure you’ve read up on what each structure involves to determine whether you choose the correct one for your business situation.

Trademark

Another issue small businesses face is trademark infringements. There are websites where you can check the status of a name before claiming it for your business. Once you find you’re in the clear, register it. It belongs to you now and will allow nobody else to use it.

Employee termination

Firing an employee can happen at any company. When you find an employee to be a bad fit, for whatever reason may be, you need to protect yourself from any repercussions a jaded employee might make. To cover all areas, be sure you have a clear set of rules and policies for your employees. Things to cover include their roles and duties, salary, and benefits. Here you can also include possible reasons for termination. During the hiring process, be sure to go over your company’s policies with your new hire. You should also provide an employee manual at this time and have them accessible for employees down the line. It’s equally as important that you document any disciplinary actions an employee might have made for future reference.