Start businesses: legal mistakes.

World of translation : Business
, 14:55


entrepreneur, businessYou are a businessman, not a lawyer. However, when it comes to business you need to take care of the accordance of your business to the letter of law, or else you risk a safety of the business, and your own safety - fines payout and execution of other penalties or even imprisonment.

Here are five of the most common legal mistakes which must be avoided:

1. Failure of constituent norms of  business registration
registration of businessIf you work independently, making all of constituent documents may seem unnecessary troubles. But in reality, the formalization of business structure will provide you full legal protection: in the case of a claim all of your personal assets could be under threat if you do not take appropriate measures for their security.

2. Payment for workers on hiring as contractors or wages in envelopes
salary in an envelopeCover the costs of social security and insurance for employees can be quite troublesome, but this efforts are needed, they will save you from excessive and more serious problems. If you will try to avoid these costs by issuing payments to staff as contractors or simply by paying "black cash in an envelope", you run the risk of conflict with the appropriate bodies of control. To avoid this, it is necessary to ensure, that both your business and your employees report about all payments.

3. Infringement of patent rights

Infringement of patent rights, patentIn a situation when you do not perform the proper patent norms of branding and marketing line of your business regarding trademarks, names and slogans of other companies, beware: if an established business with a similar name or trademark will assume that you are encroaching on their intellectual property, you run the risk of penalties sanctions, or worse, a lawsuit against you. If so, you most likely will be forced to rebrand your company or, for example, to refuse site's domain name and valuable links. If you have not started your business officially, check patents and trademarks, so the desired name and slogans were free and unpatented, and only then register your trademark.

4. Delays in negotiating contracts
signing the contract, contractSecuring deal with a handshake possibly was sufficient at the time of our ancestors, but today, when legal responsibility is common to all, business owners need to be protected legally. Use legal services or find a staff lawyer for the standardization of customer and supplier contracts, the terms of your contract and the estimated penalties for failure of appropriate protocols. If you have to sign an agreement with another object, firstly send on the verification for your lawyer to make sure that all the conditions are favorable for you.

5. Not scheduled hereditary transfer of your business
transfer of business, businessMost entrepreneurs to succeed, continue to work whole their lives without retirement. But if you have not provided a plan, which leaves proper instructions for the transmission of proprietary rights of your business, then your family will not be prepared to continue the management and workflow of your company and even if it will be lucky enough not to lose a company, it also can quickly lose company's value and rating. You should definitely discuss with your family members and business partners, your plans for the future of the company after the completion of your leadership, also prapare and enclose your decision legally at the notary.

Author: World of translation
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  • avatar
    Randhil - 8.02.2013, 04:33
    Knocked my socks off with knolwedge!