Avoid These Common Mistakes When Starting A Business
Almost all business interactions have the potential to trigger disputes, impose unexpected liabilities, or violate tax regulations. A meeting with an Indiana lawyer can inform you about important issues that you might have overlooked when building your business plan. Legal advice can prevent or limit legal problems as you pursue your business dreams. People starting new businesses sometimes make mistakes. At Webster & Garino, we understand the common trouble areas often encountered by entrepreneurs.
Shot of two young entrepreneurs sitting together at office desk. Man showing something on clipboard to woman in office.
Delayed Formation of Business Entity
You might think that you can get started in business as a sole proprietor or partnership based on verbal agreements and then formalize everything later, but you have nothing to gain by waiting except risk. The structure of your business entity determines its legal position in the world. It could shield your assets from business debts or leave you vulnerable. A business attorney can help you set up an appropriate business structure after explaining the liability issues and tax obligations associated with sole proprietorships, partnerships, limited liability companies, and corporations.
Inadequate Partnership or Operating Agreements
You and your business colleagues could end up distracted by misunderstandings and disputes unless you establish everyone’s rights and responsibilities in writing. A Carmel business attorney can identify the subjects that your agreements or corporate bylaws should address.
Lack of Privacy Policy and Terms and Conditions
You are understandably eager to make your first sales, but failing to publish a formal privacy policy could get you in trouble. Your customers have a right to know how you handle their personal and financial information. Similarly, you should develop terms and conditions that explain the proper uses for your products or services.
Vague or Missing Contracts and Leases
Clear contracts should manage your relationships with suppliers, service providers, landlords, and tenants. Any business relationship that lacks clear contractual guidance weakens your position should something go wrong.
Poor Tax Compliance
Choosing a good business structure for your operation is only half of the battle. How to comply with various tax laws will not necessarily be clear to you. A Westfield business attorney can alert you to the need to collect sales taxes or make quarterly income tax payments. If you have employees, then you must withhold payroll taxes as well.
Discussing your goals with a business lawyer at Webster & Garino will help you determine the appropriate entity and agreements needed to avoid the common pitfalls of starting your own business. Protecting your interests will always be our priority as your representative. To speak with a Westfield business lawyer, please contact us at (317) 565-1818.
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