Maintaining the smooth running of a business takes a fair amount of time and effort. It’ certainly not for the faint-hearted or lazy. You often have to wear many hats as a small business owner; HR, accounting, the CEO as well as many others. It can be slightly overwhelming, and with no help, things can sometimes slip through the net.
If this happens, it can sometimes leave your company vulnerable to some legal problems. Let’s have a look at some of the ways you can avoid legal problems as a small business below.
Know About the Labor Laws
This is one of the most important areas you need to know about. If you find yourself expanding and needing to hire this is what you need to understand. Get help from people like Boppre Law Firm, PLLC when you do start to recruit. If you want to start hiring a team, it’s essential that you know about the labor laws. These laws are want to govern the minimum working wage, the hours they can work, and when they should be paid, and these are just a few. Labor laws also include topics like overtime pay, what a normal working week looks like, and when they need to receive a final paycheck after termination. All of these are important factors to consider when you make your first hire.
Have Everything in Writing
Whether you are recruiting someone, doing business with another business, or are having maintenance work completed, you need to get it in writing. Having things in writing can be applied to any area of your business, from lease agreements, through to the clawing service you use to clean the office on a weekly basis.
Requesting things to be in writing doesn’t mean that you aren’t trusting. It just means that you are protecting your business and the other people you are working with. When you are closing a deal, make sure you get the final details in writing just in case things don’t follow the plan.
Keep Business Records
If you want things to run as smoothly as possible, you need to make sure you are keeping great financial records. You should keep track of your cash flow, and you should also know where any income is being used. This will enable you to analyze your cash flow and complete an accurate financial forecast. To do this you need to have proper documentation. Keep a record of all the money that comes in and leaves the business. This includes payroll taxes, supplies, and utilities. This is the information you need when you prepare you business taxes each year. If you don’t keep track of these areas, and as a result, your taxes are delayed you could face legal action against your business.
If you spend some time understanding and learning about the applicable laws to your business, as well as keeping on top of records, you are able to avoid a lot of legal issues. You don’t want to risk your business for the sake of something that coils have been avoided.