Ensuring you are working within the bounds of the law is one of the most important things you can do when running and operating your business. Although it may be a significant annoyance, following the rules is necessary if you want to continue being successful and, more importantly, turn a profit in the foreseeable future.
That said, encountering legal issues will cost you more than simply a few hundred dollars in fines. After all, there is always a chance that your licenses could be revoked. This will lead to your company closing its doors prematurely. At the end of the day, business owners and managers must follow the rules if they don’t want to incur heavy fines or end up in jail!
Take the city of Denver as an example. Small business owners struggle to keep up as the number of businesses grows in the city. With them investing more time in streamlining their operations, they have little time to consider such financial matters.
Despite several proposals to cut taxes from 4.81% to 4.50%, it is still challenging to churn out more from profits for taxes. It’s a growing concern.
So, now is the right time to learn more about the law to ensure you’re legally operating your business and working towards achieving your bottom lines. With that in mind, here are a few tips to ensure your business operations are legally efficient.
1. Hire the Right Lawyer
When it comes to something as essential as your business, you should have any second thoughts about hiring legal help. A lawyer can intervene and assess the situation if you are uncertain about a contract or have any concerns about your business.
They will be in a position to clarify contracts and any specific clauses that you might not comprehend. In the end, asking for assistance is not shameful, but refusing to do so when legal help is necessary can be hugely damaging.
As far as finding a lawyer in your locality is concerned, you shouldn’t have any trouble. Suppose you’re a business owner; in that case, you should consider hiring a business law firm in Denver to hire a lawyer and ensure you’re not overlooking any financial aspects of your business.
2. Do Some Research
Ultimately, the more knowledgeable you are about business law, the more legally sound you will be. You can do this by checking out various online resources such as the SBA (Small Business Administration). That said, here are a few processes and things related to them you must consider:
- Advertising and Marketing
You can be subject to legal action if you perform misleading advertising. Therefore, understanding the legal requirements for marketing and advertising will provide you the peace of mind to advertise and allow you to be in the green legally.
- Labor and Employment
The employment procedure can sometimes get very complicated. Typically, employment and labor laws deal with hiring concerns, workplace policies, and the proper way to fire employees. But, some companies break the law only because they are unaware of the rules.
- Finances
Whether your attention is primarily on your company, clients, or investors, you must be familiar with the fundamental financial laws. When running a business, money can change hands numerous times. So, please do your due diligence and research the laws for handling your business’s finances.
- Intellectual Property
You should take quick action to ensure you earn an ROI, primarily if you’ve invested in intangibles like logos, content, trademarks, and that uniquely identify your company or products. Talking with a knowledgeable intellectual property lawyer will enable you to enhance the durability and caliber of your intellectual property and save intellectual property costs in the long run.
But, before you do that, learn the intangibles you can get registered as intellectual property.
3. Always Put Pen to Paper
Unfortunately, most small business owners and young entrepreneurs are naïve and trust anyone they sign contracts with. So, whenever you put form partnerships with third parties such as a client, business partner, vendor, or service provider, always put pen to paper.
A written and signed contract is a legally binding agreement that parties cannot breach. If anyone does, strict legal action is imminent. However, sometimes loopholes can lead to unnecessary legal battles. So, ensure that you hire a business attorney to help you understand your contracts’ legal terms and conditions.
4. Update Your Paperwork
Another thing to remain legally efficient while running a business is updating your out-of-date paperwork. For example, it might be worthwhile to spend a little money on hiring an accountant if, for example, you struggle to stay on top of your tax records. A couple of hundred dollars is a small price to prevent or address potential issues that can develop if you encounter legal challenges in the future.
Furthermore, if your company is audited, hiring an accounting professional will provide you peace of mind. Of course, you will only have to engage the accountant a few times a year. However, they will ensure that all your books and legal paperwork are in order throughout the year.
5. Keep Your GDPR Record of Processing Up-to-Date
Most companies that deal with personal data must keep a record of everything. So, ensure you verify that said personal data is still current. However, that will not be the case if you’ve altered your business operations due to the recent Coronavirus pandemic. But, generally, it’s advisable to maintain compliance and avoid legal issues.
Before using people’s personal information, you must inform them of any changes. If you don’t, you can unintentionally end up using their data in a way that breaches GDPR. So, try to remain as transparent as possible regarding data. This usually comes in the form of privacy notes or privacy policies.
As far as privacy policies go, you don’t want anything written by someone who has good intentions but doesn’t understand the basics of privacy law.
6. Hire a Business Advisor
Hiring a business advisor is crucial in helping you manage the day-to-day operations and ensure the legality of said operations. You might lack understanding in some areas of your company.
However, a business advisor is someone who has received specialized training in how to run a business efficiently and legally. Due to this, they are unlikely to make mistakes and will provide you with the knowledge to ensure your business operations are legally compliant.
The Final Words
Although business law is highly complex, that doesn’t mean you’ll be given any leeway. You are obligated to abide by the regulations no matter what. So, by applying the tips mentioned above and being careful not to overlook what goes into maintaining legal compliance, you will be on your way to running a legally secure business!
