Running and operating a small company requires you to multi-task. Besides generating more sales and revenue, you need to make sure the company starts generating profits. As a small business owner, you also need to deal with some areas that don’t fall under your comfort zone. Legal issues is one of these important tasks.
Every successful small company relies on the services of a good lawyer for legal support and advice. However, there are times when you may not want to bear the expense of consulting a reputed lawyer. Due to this, you may plan to take care of everything yourself. This can lead to various mistakes. In this post, we’ve discussed 6 legal mistakes a small company needs to avoid.
Don’t Enter Into Verbal Contracts –
A lot of non-attorneys don’t realize that it’s possible to enter into a legal contract without agreeing to things in writing. In some cases, even a verbal contract is considered to be binding. Many small companies enter verbal contracts on a regular basis. This is considered to be a big mistake. If it’s worth entering a contract, you need to make sure it’s documented correctly. In case you’re entering into a contract with suppliers or customers, you need to make sure all the terms are clearly set in a detailed written contract. This reduces the chances of a dispute in the future. Both parties can easily refer to the documented agreement.
Get Contracts Reviewed by Attorneys –
One of the biggest mistakes is to draft a written contract on your own. Drafting a written contract is a skill developed over the years. When you try to draft a contract on your own, you tend to miss important clauses. This leaves the contract open to misinterpretation. It also fails to protect your interests. Before presenting a contract to the other party, you need to consult an attorney.
Read Before Signing –
This mistake is quite obvious. You would be surprised to know that numerous people sign a contract without reading it. It’s important to spend some time going through the contract. You need to make sure the contract says exactly what you want it to say. You should make some sincere efforts to understand the contract.
Act in Accordance with Governing Documents –
All companies have governing documents, which lay down the rules for Board of Directors, management and other employees. For instance, if you’ve chosen to offer a guarantee to another party, you need to make sure you work according to the process laid down to conduct this task.
Employees Should Act in Accordance with Fair Work Act –
It’s worth mentioning that many small companies get into legal troubles for breaching obligations stated by the Fair Work Act. When you want to terminate an employee’s job or make him/her redundant, you need to make sure the company acts in accordance with the law. You need to work with an experienced employment specialist.
Last but not the least, payment of taxes is one of the most complicated matters related to business operations. Failure to pay your taxes in time is against the law. You need to make sure you understand all the obligations. You should work with an accountant and business lawyer to avoid any legal trouble.
How Does a Business Lawyer in Singapore Help?
Most of the companies believe that hiring a business lawyer is not necessary as a financial accountant will be able to manage all the finances. However, financial obligations are usually associated with legal implications. An organization should not wait till they are sued. It is important to hire a professional attorney for your organization at the earliest. Most attorneys provide different services which are vital for the growth and development of your organization. These services may include handling lawsuits, liabilities, trademark advice etc.
Even an FDA attorney plays an important role if you own an organization related to food products or cosmetics. He may guide you about various laws and practices established by the Food and Drugs administration. It does not matter which type of company you own. It is important to get some legal advice from experts who have a better understanding of laws and practices related to your business. Here, we will tell you about some benefits of hiring a professional attorney for your organization.
Rules and Regulations –
A professional attorney has a better understanding of laws and practices related to your organization. Therefore, he is able to guide you through all legal processes and advise you about strategies and plans so that you are not breaking any laws. Moreover, a lot of paperwork is involved in agreements and contracts. Certain clauses and implications may be out of your zone to understand. A professional attorney will be able to tell you if the deal will be beneficial for you or not. Moreover, attorneys also help your organization in preparing contracts for dealings with customers as well as suppliers. There are many deals which involve intellectual property. Business lawyers also handle any kind of work related to patents.
Taxes and Licenses –
Every organization has to pay some tax to the Government. There are many different taxation laws and guidelines which a company needs to follow. An attorney ensures that all the guidelines are being followed by your company so that you do not land in any sort of trouble. Commercial transactions should be completely legal and an attorney ensures they comply by the guidelines set by the Government. Moreover, you have to acquire many different types of licenses in order to run a company. A professional attorney helps you acquire these licenses easily.
Queries and Doubts –
A professional lawyer is able to clear all your doubts and queries before you go ahead with a deal. For example, companies dealing with food products and cosmetic may have many unanswered questions before launching any drug related products. An FDA attorney is able to answer all these questions so that you can go ahead with the deal with a stress free mind. A professional attorney always gives advice so that you can take decisions which are both financially and legally sound. A professional attorney lawyer also guides you through all the paperwork which would have been tiring to handle on your own.