3 Biggest Legal Mistakes Small Business Owners Make

Small Business Lawyer

If you’re just starting out as a small business owner, you might think you don’t need to worry about the legal aspects of your company right away — after all, you aren’t exactly raking in cash or facing much competition yet. While it may seem like you can put off contacting a small business lawyer Knoxville, TN until later, it’s actually essential to talk to one at the beginning stages of your company. Here are three of the biggest legal mistakes that small business owners make, so that you can learn from their mistakes and avoid making them yourself from our friends at Carpenter & Lewis PLLC.

Not having a strong NDA (Non-Disclosure Agreement)

One of the most common mistakes small business owners make is not having a strong NDA in place. This document protects your ideas and prevents others from stealing them. Without an NDA, you have no legal recourse if someone does steal your idea. They can use it without compensating you or even be liable for damages. Having one of these agreements will give you peace of mind knowing that if something happens, you’ll have a contract in place to protect yourself and your company’s interests.

Thinking Everything You Need Is Written in Your Contract

It’s not uncommon for business owners to believe that as long as they have a contract in place, they’re good to go. However, this couldn’t be further from the truth. Your contract is just one part of the legal puzzle, and it’s important to have an attorney on your side who can help you navigate the other pieces. That said, there are three things every small business owner should know about contracts:

1) The length doesn’t matter: What matters is what each clause means. If a contract seems too short or vague, ask yourself why and make sure there are no hidden clauses. A good lawyer will never draw up a document that doesn’t give you what you need because their goal is to protect your interests, not theirs.

2) Be specific: Be specific about the terms of the agreement so there’s no confusion about what will happen if certain circumstances arise (such as bankruptcy). A thorough agreement should include all possible events that could come up during any point in time so neither party has any surprises when things inevitably change over time.

Not Registering Your Business Name

One of the most common legal mistakes small business owners make is not registering their business name. Without taking this simple step, you could be opening yourself up to a world of legal trouble. Not only could another business come along and register the name you wanted, but you could also be sued for using a name that someone else has trademarked. To avoid all of this headache, just take the time to register your business name with the state or federal government. You can do it in person at the Secretary of State’s office or by mail. You’ll need to provide certain information about your company such as its type, form of organization, physical address, trade name and its location within the county.

Contact a business lawyer today for help with all things business-related!