Last month, I did a webinar with SCORE Boston on Common Legal Mistakes Small Businesses Make: Common Legal Mistakes Small Businesses Make
Starting and running a small business is exhilarating—but legal missteps can derail even the most promising venture.
Here are the takeaways:
- Missing Governing Documents: Whether you’re a sole proprietor or part of an LLC, lacking clear operating agreements or bylaws can lead to confusion and disputes down the road.
- Worker Misclassification: Treating employees as independent contractors (or vice versa) can trigger audits and penalties. Know the difference and document roles carefully.
- Handshake Deals Aren’t Enough: Verbal agreements may feel convenient, but without written contracts, enforcement becomes murky. Always get it in writing.
- Buying a Business? Don’t Skip Due Diligence: From liabilities to licensing, a rushed purchase can bring hidden risks. Legal review is essential.
- Annual Reports Matter: Forgetting to file with the state can lead to administrative dissolution. Set calendar reminders and stay compliant.
- Succession Planning Isn’t Just for Retirement: Illness, relocation, or unexpected events can disrupt operations. A basic plan ensures continuity.
This session was a reminder that legal foundations are just as critical as marketing and finance. If you missed it, reach out for a personalized legal checkup.