Sources of Legal Knowledge – Knowledge is Power
Legal Course: These could be comparatively cheap, short- term courses that will give you a basic understanding of legal concepts to start with, and then focused knowledge on the legalities of your line of business. These courses are generally meant for non- legal persons and would be easy to follow.
The Internet: Is an amazing fountain of knowledge on any subject, including the legal arena. Make sure, however that you are looking at authentic legal sites so that you are sure you are getting proper advice. The Internet is an almost limitless source of knowledge, and so sifting through the available data can be quite daunting.
Professional Legal Advice: This, of course, is the best and least time-consuming option, though often the most expensive. You need to make sure that your lawyer is completely knowledgeable about the laws applicable to your specific business and is not just a general business lawyer. It would be useful if you already have some legal knowledge as this will help you better understand what your lawyer is telling you.
Another downside of this option is that you would normally resort to this after the law is broken and you have received some sort legal notice. However, prevention is better than a cure, so rather than get someone when you have a problem, it is better to have a consultant, on a retainer, who can help you make sure that you do not get into trouble in the first place.
Common Safeguards To Keep You Legally Safe
Contracts or Service Agreements: Verbal agreements are difficult, if not impossible to prove and enforce. Enter into contracts with all your vendors for goods and services that you will require. The service agreements should be comprehensive and clearly define all the deliverables and payment terms. You may want to review your service agreements periodically to ensure that they cover your changing business needs and the changing laws and regulations. Similarly, enter into service agreements or contracts with all buyers to whom you provide goods or services. Have your Service Agreements vetted by a lawyer to ensure that you and your business are protected.
Legal Termination of Employees: In today’s business environment, that dreaded pink slip has become very common. However, you need to ensure that if you ever need to give someone the pink slip, you do so legally. You need to have all the necessary documentation and you need to have just cause. Wrongful termination could easily come back haunt you and cause your business’s downfall.
Independent Contractors: This is a good solution for the additional help you may require for a short time. Enter into a formal contract with them. They are likely to be specialists for the job you need done, have a fixed time frame in which to work and measurable deliverables. To your advantage, you will not have to comply with all the legalities of employment. On the downside though, this option is normally more expensive than taking on people yourself to get the job done. If you do hire a contractor to perform certain services, ensure that you are informed of all the applicable legalities. You will often find that even with contract employees you have certain legal and reporting obligations to the government.
Partnership or LLC: If you are running a partnership business, ensure that the partnership agreement clearly defines the rights and obligations of each partner and make sure that the terms laid down in the agreement are followed. Running a business as an L.L.C. (Limited Liability Corporation) may be a good option to running a partnership business (consult your attorney for specifics on this). This will safeguard your personal funds in the event of there being a lawsuit.
Intellectual Property Issues: This is an issue that you need to be careful of, no matter what business you are running. The sheer number of Intellectual Property lawyers in the U.S. gives you some idea of the scale of this issue. intellectual property issues could come up in the form of copyright infringement, registered trademarks, confidentiality agreements, and invention assignment agreements.
Accounting and Record Keeping: Failure to comply with regulations in this area ensures that you will have the IRS on your back in no time. For your security, it is essential to keep both paper and electronic copies of all business transactions. You should either hire an accountant or use a bookkeeping software package to help you tackle this task. Also ensure that your accounts are audited and certified regularly.
As attractive as running your own business and being your own boss may be, it is often not as easy as it sounds. Erring on the side of caution should be your motto with regard to all legalities – and arming yourself with knowledge on business laws and business ethics will help keep you and your business safe.
