Just because you own a small business, doesn’t mean that you won’t run into legal issues. There are as many small business legal issues as there are for major Fortune 500 companies. No matter your business size, you are still countable to the law of the land, so be knowledgable about the common pitfalls so that your small business is protected.
Learn to Pay Your Taxes
First, let’s get the big one out of the way. Taxes are something no one likes to do or pay. But we must pay. However, many businesses file tax returns late. For example, recent figures from the UK suggest that 5% of small businesses haven’t filed their latest tax returns yet. There are many reasons. And maybe you struggle to understand this. However, you can download a tax invoice template from sources like Reckon to get your business finances in good working order.
Define Your Employees Properly
Outsourcing staff is very common these days. And as a small business, you probably do it to avoid large wage bills at your business. However, you need to define whether you’re employees or freelance, independent contractors, or full-time employees. Sometimes there is confusion over this, and it can land you in legal hot water. For an employee to be labeled as an independent contractor, they must have influence over their work and be paid for doing so.
Small Business Legal Issues Includes Antitrust
You would be forgiven for thinking that antitrust doesn’t apply to your small business. But antitrust laws apply to everyone. Of course, antitrust mostly applies to large companies trying to gain a monopoly in their sector. But fixing prices is illegal even for a small business in a local area. And you need to pay attention to this because, for example, in the US, you can be fined up to 350,000 dollars with three years in prison for breaking the nation’s strict antitrust laws.
Make Sure You Have Insurance
Insurance is a necessity in business, even for small ones. You don’t have to have all types of insurance by law. But often, workers’ compensation is legally mandated, yet 26% of small businesses still operate with it. This is a terrible mistake because you can end up facing large fines and even jail time for non-compliance. In addition, your workers’ insurance also applies to part-time staff. The main purpose is to cover sick pay and the cost of injury on the job.
Beware of Unpaid Internships
Unpaid internships are common these days. They can be a good foot in the door for someone looking to get in your business at ground level or get some on-the-job training. However, they can also be useful for finding suitable employees without incurring much of a cost. But in some places, unpaid internships are against the law. In order to hire an intern without paying them, you must meet criteria based on the laws of your country, and these are different everywhere.
Summary
There are many small business legal issues that you can face, no matter your size. It is best to learn to pay your taxes on time, learn about antitrust laws and beware of unpaid internships. By being aware of the laws of your country, you can keep your small business safe from legal issues.
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