Six Legal Issues That Small Businesses Face Constantly

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Businesses have a lot of problems when it comes to daily operations. However, one of the biggest problems many companies face is the law.

The business world still falls under regulations and laws, and these laws make a huge difference in how you do your daily operations. Ignorance of the law is no excuse, and ensuring your business is up-to-date on the latest changes is critical.

If you’re planning to start a business this year, you must know more about the legal issues that many small businesses face every year. Some can be as often as every day, depending on your field. Here are some of them.

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Trademarks and Licensing

99% of businesses in the United States are small businesses. These companies use logos, marketing ads, products, and ideas that coincide. This is a big deal for some entrepreneurs, especially for those who have discovered the next big thing in their industry. This is why trademarks and licensing are such a huge legal issue in the business world.

Trademarks and licensing are two different things, but they’re critical for protecting your business. A trademark is a specific symbol, design, or name associated with your company. You can use this to protect your brand and keep others from using it without permission. A license is a legal agreement between two parties that allows one party to use the other party’s intellectual property.

These are important because they help you protect your business from others who might try to steal your ideas. If you don’t have a trademark or license for your products or services, you could be in trouble if someone else decides to use them without permission.


Almost every business needs to enter into contracts with other companies. This could be for services, products, or even just for employment. Contracts are necessary because they help to protect both parties involved in the agreement. They establish what each party is responsible for and what will happen if one of them fails to meet its obligations.

If you’re not familiar with contract law, it’s important to find someone who is. So many things can go wrong when two businesses enter into a contract, and you need to ensure that you’re protected from as many of them as possible. The last thing you want is to get taken advantage of because you didn’t know any better.

Asset Disputes

When two businesses merge or are sold to a larger company, assets are sometimes divided unfairly. This can happen when one business is deemed more valuable or when certain assets are more important to one party than the other. When this happens, it can lead to asset disputes.

Asset disputes can also happen when a business is transitioning to a new successor, especially if a previous shareholder or owner has recently retired. Asset disputes can be very costly and time-consuming to resolve.

If you’re involved in a dispute like this, then it’s important to seek legal help right away. There are many companies that can help you out, such as Keystone Law. The sooner you start working on a resolution, the better off you’ll be.

Shareholder Dispute

Similar to asset disputes, shareholder disputes can happen when two or more shareholders can’t agree on something. This could be anything from the direction of the company to how profits should be divided up. Much like asset disputes, shareholder disputes are often very costly and time-consuming to resolve. They can happen as often as asset disputes.

Employee Termination

When a business decides to terminate an employee, it’s often a very difficult decision. It can be even harder if the termination is wrongful. Employees have many legal rights when it comes to being terminated, and businesses often find themselves in legal trouble if they don’t follow them.

If you’re thinking about terminating a problematic employee, then it’s important to consult with an attorney first. You need to consider many things before making a decision like this, and you don’t want to end up in court because you didn’t know what you were doing.

Getting Sued by Consumers and Clients

Lastly, getting sued is always a possibility for any business. This could be because of something the business did or didn’t do or something one of its employees did. No matter the reason, this can damage your company’s reputation if you don’t do it right.

If you’re worried about getting sued, it’s vital to have liability insurance. This will help to protect you from any damages that might be awarded in a lawsuit. It’s also a good idea to consult with an attorney to determine your legal rights and how you can best protect your business.

There are many other legal issues that small businesses face every year, but these are some of the most common. By knowing what to look out for, you can ensure that your business is protected from as many of them as possible.

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