Being a business owner can be difficult and stressful. One of the last items owners tend to think about when starting a company are potential legal issues. However, glazing over these possible issues can get business owners into a lot of trouble.

Instead of being in the dark about possible legal concerns, take a look at the most common legal mistakes made by small businesses.

1. 1.       Establishing legal structure. Often new business owners end up establishing the wrong legal structure for their company. This can open them up for personal liability if they are involved in a lawsuit, as well as additional taxes and paperwork. It’s important to select the proper legal structure and best to gain assistance from an experienced business attorney.
2. 2.       Failing to set up a shareholders’ agreement. If the owner decides to sell one day, or a founder leaves, these agreements guide everyone’s actions and make the process easier. Without a proper shareholders’ agreement, exiting the company can become a mess.
3. 3.       Governing employee conduct. Employee manuals are essential to a company. Not having one can cause companies to be sued by former employees, and has led many small businesses to bankruptcy.
4. 4.       Not playing well with others. Talking badly about competing businesses in the area can get lead to more than just hard feelings. It can be labeled as libel and lead to a nasty lawsuit. It’s best for businesses to grow a good relationship with their customers without putting down the competition.
5. 5.       Protecting intellectual property. If a business doesn’t get a patent, copyright or trademark, another competing business may swoop in and steal their ideas. This could really damage the bottom line.

These are some of the most common legal battles businesses can face. With the help of a good attorney, these issues and many more can be avoided. Having an attorney included in the company can be a good choice for those who are worried about legal mistakes.