Top 10 Legal Mistakes Small Businesses Make
Forbes magazine offers a list of the top 10 legal mistakes entrepreneurs make and what to do about them (in addition to seeking the advice of an attorney).
First on the list is failure to incorporate. “At some point, this hurts them because they want to get outside investors, founders leave or they get sued by a customer or employee. Not having the right legal structure can open them up for personal liability,” the article says.
The list also includes tips about shareholders’ agreements, human resource guidelines, talking trash about the competition, and more.
Another is bringing in outside investors. “Many small business owners bring in outside investors since they are desperate for cash. They then run into disagreement on how the company is to be run and the investors threaten legal action,” Forbes says.
