Running a small business is in Orlando is challenging. Many of Florida’s entrepreneurs excel at their trade or craft, but sometimes lack experience in the complexities of legally running a business, which can result in pitfalls. A business lawyer can be an invaluable asset, helping small business owners avoid common mistakes and safeguard their business from unnecessary risks.
1. Structuring the Business
Choosing the right legal structure—whether it’s a partnership, corporation, or LLC—is crucial. Many business owners turn to services like LegalZoom to quickly set up an entity, but they may overlook the necessary formalities and regulatory obligations. An Orlando business lawyer can help ensure you follow the correct procedures, file the right paperwork, and understand the ongoing obligations of running a formal business entity. They also help you avoid getting into risky arrangements, such as those where one person provides capital while another provides “sweat equity.” Without clear, legally binding agreements, these arrangements can become problematic.
2. Preventing Employment Issues
Small business owners often misunderstand the employer-employee relationship. Employees are not simply “there to help” or “people to joke around with”—they are legally protected individuals with rights. A lawyer can help create and maintain appropriate employment contracts, advise on wage and hour laws, and ensure that tax withholdings and benefits (such as workers’ compensation and unemployment insurance) are properly handled. Employment disputes are costly, but they can often be avoided with solid legal advice upfront.
3. Contracts and Legal Agreements
One of the most common ways businesses fail is by entering deals without proper legal review. Many deals seem “simple” on the surface but can hide complexities that expose the business to significant liabilities. Whether you’re hiring employees, renting a commercial space, or entering into a partnership, a lawyer can draft or review contracts to protect your interests. Relying on handshake agreements or boilerplate contracts found online is a recipe for disaster—especially when disputes arise.
4. Avoiding Financial Pitfalls
Many small business owners also fall into financial traps. From undercapitalization to an excessive burn rate, many don’t appreciate the importance of maintaining cash flow or saving for a rainy day. A lawyer can advise on managing finances and bookkeeping practices—especially if there are multiple owners. Improper financial management, such as writing off personal vehicles as business expenses, can lead to significant legal trouble. Business lawyers can help you understand the difference between personal and business finances, ensuring compliance with tax laws.
5. Succession Planning
Many small business owners neglect to consider what happens when they are no longer able to run their business—either due to retirement, illness, or other unforeseen circumstances. A lawyer can guide business owners through the process of succession planning, ensuring that their business is passed on smoothly or sold without legal issues. Without a proper plan, the business may face operational or legal complications when ownership changes hands.
6. Firefighting Legal Problems
Of course, even the best-laid plans sometimes fail. Business lawyers are often called upon to “put out fires”—resolving legal problems that arise after mistakes have already been made. From fixing bookkeeping issues to handling disputes between owners, or helping to address regulatory fines, a lawyer can help get a small business out of trouble. In the long run, however, it’s often less expensive to avoid these problems in the first place by getting legal advice upfront.
DISCLAIMER: The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.
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