Everyone makes mistakes. A business owner’s errors and miscalculations can have an extremely negative effect on their companies. It is important to prepare carefully and also watch for the following common mistakes business owners make.
#1. Ignoring Tax Laws.
A company that makes money typically has to pay taxes, minus any available deductions. But a business owner has to think about more than federal income taxes. Employment taxes, sales taxes, state taxes, and local taxes are just a few of the taxes your company might be expected to pay. Tax agencies may assess penalties and fines for failing to file returns and/or pay taxes.
Make sure you comply with all tax laws. Enlist the assistance of a business lawyer, CPA, or tax preparer.
#2. Writing Your Own Contracts.
Many business relationships should be memorialized in writing. But, not just any writing. Strong contracts can preserve connections while avoiding costly mistakes. Have your corporate counsel or business lawyer draft your contracts.
#3. Failing to Prepare Corporate Management Documents.
Documents used to form a corporation do more than simply put the company’s names into public records. The Articles of Incorporation, corporate bylaws, and shareholder agreements set the framework for how the business will operate. Chaos could result when business owners or top managers disagree on how to run the company.
Your business attorney may assist with preparing these important documents.
#4. Failing to Protect Intellectual Property.
Most businesses have security systems in place to protect their physical property. However, intangible company assets, like intellectual property, also need to be protected. Your company may need to:
- Register copyrights and trademarks,
- File patents for unique machines or processes your company developed.
You may also want to protect domain names or your company’s name or logo. Additionally, non-disclosure agreements may keep your intellectual property from being misappropriated. Talk to your attorney about other options.
Discuss Ways to Avoid or Fix the Common Mistakes Business Owners Make.
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with business and litigation matters. As always, Our Goal Is to Help You Succeed tm. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. we represent clients throughout South Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, and surrounding communities.