Working for yourself is the American Dream. Running your own small business gives you so much, but requires a lot of hard work and effort to be successful. But even a successful business owner will tell you, problems arise and you must be equipped to handle them. This includes legal issues you may run into that you may have never even thought of.

Legal problems plague many people, but business owners can run into a long list of legal issues that should be considered before they ever arise.

Here’s some of these issues and how to mitigate any problems to come forth because of them.

Trademarks & Copyrights

A common legal problem that happens unexpectedly and frequently are trademarks. Before naming or rebranding your company or even introducing any new goods or services, make sure to do your research to ensure you’re not infringing on another company’s trademarks. When you decide on a name, there’s a possibility that someone else has it already or even holds a trademark for it. Even if it was an honest mistake, infringing on someone’s trademark is not the sort of legal trouble you want to get yourself into.

Licensing

One common legal problem that small companies face is licensing. Make sure you’re following your local laws regarding company license regulations. Otherwise, you’ll be charged costs that may have been avoided. Licensing fees vary based on where you operate, but the need to obtain one is the same everywhere. Consult your local licensing agencies, a business lawyer or an account to find out specifics about fees and licensing laws.

Misclassification

As far as the government is concerned, you must categorize workers properly. According to the Federal Department of Labor, one of the biggest problems that affect both employees and employers is the misclassification of an employee “as an independent contractors”. The Department of Labor takes this issue seriously, therefore a business owner should study the standards before classifying a worker as an independent contractor.

Firing An Employee

Having to fire an employee is something any business has to deal with at some point. Let’s say you hire an employee that is more than qualified for the job, but you later discover that keeping them on the payroll costs you more than needed. Alternatively, you discover that they just do not work well with the rest of your staff. Productivity and/or morale is suffering. What do you do? If you take the proper steps before terminating someone, you may reduce the risk of legal consequences.

To help reduce these risks, a small business owner should have an employee handbook that spells out the conditions of employment and records any disciplinary measures taken against the employee. If you’re unsure about what you should do, it’s a good idea to speak with an attorney.

Shareholders

A shareholder agreement is highly recommended if your company has more than one stakeholder. If the company breaks up or is sold, and if no deal is in place, a battle in court may erupt. Even if existing stockholders are on good terms, things could always go wrong, and leaving any gray area in terms of who gets what is not a smart idea. A lawyer with expertise in such situations should write or, at the very least, supervise the agreement.

Disputes Over Overtime

You should have a clear policy governing how overtime works. Everything regarding overtime should be upfront so there’s no issues regarding how overtime is approved. This will provide you better financial management, but it may also keep you out of legal disputes.

Lawsuits

Lawsuits are something you have no control over. If there’s a legal dispute with an employee, customer or business partner, it’s best to try to discuss and resolve a disagreement without going to court if at all possible.

It’s always best to consult with legal counsel, as they can offer the best advice about how to proceed. Say an employee in your New York City office accuses you of being responsible for their injury, contact a personal injury attorney nyc immediately to get out in front of the problem as soon as possible.

Legal fights can certainly result in mounting legal bills, so it’s in your best interest to confront them as quickly as you can.