Every novice business owner is going to go through a variety of struggles. It’s a long and complex road if you want to be successful. One of the most important things that you’ll need to consider is the legal aspect of running a business. Here are some common mistakes business owners tend to make to land them in hot waters.
Choosing the Wrong Business Structure
Choosing the wrong type of business structure can compromise your business before you even start lifting off. “It’s best to seek out the advice of a trusted attorney,” says Javier Loya, CEO of OTC Global Holdings. Tax professionals are also valuable resources that can provide you with a fiscal structure that makes sense for the type of business that you’re running.
Now, there are a variety of things that you’ll want to consider like your tax circumstances, tax benefits, and more, which is why consulting with a tax professional can help you plan for the future. “A good accountant is one of the most important things to have for any business owner,” adds Javier Loya.
Neglecting the Impact of a Service Agreement
Business owners today will sell either products or services. However, if you fail to create a written agreement, then you’re passing on terms that you can craft yourself. If anything were to happen legally, it’ll be left to the common contract law to determine the outcome of your suit. Instead, opt to create a service agreement with your clients and consumers. Not only will you be able to keep a watchful eye on your business, but you’ll also protect your business at the same time.