Most small business owners are used to figuring things out for themselves. But, there are certain things that you shouldn’t try to do by yourself, and navigating the legal aspects of your business is one of them.

5 reasons small businesses need legal protection

#1. To help you set up your business

While all businesses need legal protection at some point or another, startups are even more susceptible to legal issues. When you’re just getting started, you need legal protection more than ever.

One common legal mistake many startups make is choosing a business name that is already trademarked by someone else or has domain issues. A small business lawyer can help you research business names you’re interested in to make sure there are no issues with them.

Another common legal mistake made by startups is not choosing the right legal form (LLC, Corporation, Sole Proprietorship, etc.) to operate your business. This can lead to higher taxes and greater liability. A small business lawyer can advise you on the right form for your business, and help you file the right paperwork and take the right steps.

#2. To create or look over contracts

Small businesses may enter into contracts and agreements for all kinds of reasons. These agreements can be between your business and clients, employees, partners, investors and more.

Whether it’s a contract with an employee or an investor, it’s important to make sure that you fully understand the contract, and that it covers everything you need it to cover. If you fail to hold up your end of the deal, you may find yourself facing hefty penalties or even legal action.

Working with a small business lawyer means more oversight when it comes to contracts and agreements. It also means a better understanding of any agreement you enter into, allowing you to ensure you’re holding up your end of the bargain.

#3. To help you avoid fines and tax penalties

If there’s one thing that’s certain in business, it’s that you’ll get taxed. Everything from the industry you’re in and the type of business you operate to the form of your business can have an impact on how you’re taxed.

Think about how complicated filing your personal taxes can be and then add to that layers of tax law and business ligation, and you’ll quickly see why it’s important to have a small business lawyer on your side.

The last thing any small business owner wants is to fail to meet your obligations to the IRS, which can lead to hefty fines and penalties. Having legal protection on your side may help you save more and keep your business in the green.

#4. To protect your intellectual property

One of the most common legal issues small businesses run into is having their intellectual property (which refers to artwork, music, inventions, designs, etc.) stolen.

Unfortunately, if your small business doesn’t have the right protection in place, you’ll have very little recourse if another business decides to steal your logo, branding, unique goods and services or even business name.

A small business lawyer can help you secure the appropriate copyright, patent or trademark to keep your intellectual property safe.

#5. To keep your employment policies in compliance

Employees are protected by a favorable legal status under state and federal laws. Whether you have 5 employees or 50, you not only need to be familiar with applicable state and federal employment laws, but also abide by them.

There are many legal mistakes small businesses can make when it comes to employment, from asking the wrong questions in the interview and failing to maintain the proper HR documentation to not taking the proper steps before firing an employee.

Working with a small business lawyer can help you avoid costly mistakes when it comes to your employees and employment policies.

Small Business Benefits™ members gain access to affordable legal protection that can help them protect their business and save hundreds of dollars compared to in-house legal counsel. Learn more.