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Don’t let these legal issues stunt the growth of your business

On Behalf of | Dec 18, 2021 | Business Litigation

Trying to grow a new business can be an exciting prospect, but it can also be extremely challenging. Any commercial venture comes with a certain level of risk, and there are numerous issues that business owners can face — especially when just getting started.

Avoiding legal disputes and addressing them efficiently if they do arise are key to ensuring that a business remains profitable. Outlined below are two key legal issues that may harm the growth of a business.

Not choosing the appropriate structure

Initially, a startup may be solely run by one individual. However, as growth continues, the requirement for more people to get involved will likely arise. There are a number of different business structures to choose from, with each kind having different implications in terms of ownership, taxation and liability.

The most common types of business structures after sole proprietorships include partnership, limited liability company (LLC), an S corporation and a C corporation. Having a firm understanding of these structures could ensure that the optimal path is taken to meet particular business objectives. Additionally, having an appropriate business structure can shield companies from business disputes and lengthy litigation.

Not implementing effective HR procedures

As companies continue to grow, owners are likely to take on more staff as well as enter into new partnerships. At this point, it is essential that human resources (HR) issues can be efficiently clarified.

Having the appropriate documentation and policies in place is the first part of this process. For example, the company should implement an effective anti-discrimination policy to help ensure that employees are treated fairly. At the same time, when things do go wrong, matters can be settled more promptly with strategies for dispute resolution.

Developing businesses can face numerous challenges, but with the appropriate knowledge and policies in place, most issues can be resolved. As a business owner in Ohio, it is vital to familiarize yourself with the legal protections available to you.