Owning a small business is stressful. You’re constantly busy and are always learning something new. Knowing and understanding the legality of what you’re doing can best stressful, and while you may want to do it all, you’re the business expert and need a legal expert, or a business lawyer, to help you sort through the legal stuff. In this blog, we’re going to discuss some common but easily forgotten business questions that small business owners fail to ask. Don’t allow yourself to be stressed out by the complicated nature of business law. Contact The Law Office of Brian Loomis instead for all of your legal business needs. With years of experience to offer and an understanding nature, Brian will be there by your side to help you make the best decisions for your small business. Contact him today for more information!
Do I Need to Keep a Record of This?
When you’re just starting out, it can be easy for things to fall through the cracks or be forgotten about. While this is understandable, you need to keep a careful record of several important documents from day one. For example, small businesses are required to keep a certain number of receipts and invoices for tax purposes. It can be easy to forget about certain papers when your small business is stressful and just getting started, but it will be much more overwhelming to find out that you need those documents later and have to sort through pages and pages of records. Keeping a careful log of all of your financial transactions, as well as anything and everything that pertains to your small business, will definitely benefit you in the long run and save many a headache and late night.
What If I Get Sued?
Any type of business venture is scary and could wind up with you facing a lawsuit. Whatever life throws your small business’ way, it’s important to know the legal risks. If you’re starting a business that involves people feeding alligators, you have a higher chance of being sued than a person opening a small boutique. You might not only be sued by an angry customer. A former employee, a similar business, or even a family member may feel the need to sue your business due to buying and selling disputes, copyright infringement, unlawful termination of employment, and many other issues that could leave you lying awake at night. While facing legal troubles is scary for many people, having an excellent business lawyer who can represent you in court will take much of the stress away.
Can I Use Personal Assets or Funding in My Small Business?
For many small business owners who are just starting out, the personal line and professional line is certainly blurred or even nonexistent. You may office out of your bedroom, fulfill orders from your kitchen, and use your personal cell phone to take calls. While this is understandable and the way that many successful companies got started, it’s extremely important to keep your business and personal life separate. Even buying lunch for an employee (who may also be your cousin) on your personal credit card can cause issues. If an investor is giving you funding to grow your business, he or she will want to be assured that the money being invested is only being invested in the business. Blurring the lines too much could land you in court and might cause you to lose investors or important funding. It’s best to always have a strict separation between business and personal life, especially in the beginning stages. It will teach you good habits and also keep you out of the hot seat in case an investor wants to know exactly where every penny is going.
What Should I Do Before Finding an Investor?
If your business is showing growth and promise, you might have a chance of procuring funding from outside resources. For many businesses, outside investing is honestly the only way that a business can grow. You can make your small business improve and reach more people on your own, but it will take years to do what a large sum of money from a trusting investor would only take weeks to accomplish. That being said, it’s important to make sure that you’re not approaching a potential investor too early. Someone interested in your business won’t just write you a check because he or she feels like it. There will be important stipulations, and you need to be aware of them and willing to abide by them before you shake on the deal.
It’s important to think about every possible outcome and question before starting your small business. It’s even more important to have a trusted and reputable business lawyer by your side from day one. If you’re searching for a business lawyer in the Springfield area, Brian Loomis is your man. Give his office a call today!