All business owners want to make the best decisions for their company, but sometimes you can make a mistake that has costly consequences. Here are some of the worst legal mistakes you can make in your business.
Starting and running your own business can be a hugely rewarding experience, but it’s important to make sure you don’t make any legal mistakes along the way. This article mentions some of the worst legal errors that businesses can make. So, whether you’re just starting out or you’ve been in business for a while, read on to find out more.
Almost every business will make mistakes at some point, but ensuring you don’t make the same ones twice is key. Here are four of the worst legal mistakes you can make in your business:
Not having a business plan.
Not having a business plan is one of the worst legal mistakes you can make. You need to get this right in order for your business to succeed, regardless of its size. A good business plan should be written in plain English and include financial plans, marketing plans, your projected profit margins and how you will achieve this. Your start-up costs and business revenue should also be included.
Not registering your business with the state or county.
You need to get permission from your state or county before you start running your business. This is called registering your business with the relevant governing body and without it, you could be in breach of contract with the government, which could have serious consequences.
Failing to get the correct licenses, certifications and permits.
You will need to get certain permits and licences for your business, depending on the type of company you are running. You should get these before starting up to avoid problems later down the line. You might miss a lot by failing to get the right licence, such as the BOI (Board of Investment) certification, which grants incentives to certified companies. Don’t hesitate to get help from Vize Counselor on BOI registration requirements. There are also other law firms you can go to, especially when you are located in Thailand. All you need to do is do a quick search on Google.
Not keeping track of expenses and income.
Keeping accurate accounting records is essential for any business, so you need to get this right from day one. This includes keeping all invoices and receipts, as well as adequate documentation relating to your company’s accounts and expenses. You’ll also need to get tax returns done on an annual basis.
Taking on too much debt.
You need to get your business funded before you get started, but that doesn’t mean borrowing as much money as you can. If you get too far in debt and fail to pay back what you owe on time, this could have serious consequences for both your company and any personal assets you own. Even if things go wrong and your company fails, try to get your finances in order as soon as possible.
Failing to get legal counsel.
There are so many legal pitfalls out there that it can be very difficult to get your business off the ground without help. It’s important to get industry-specific help when you get started, so speak with an experienced commercial solicitor about any issues you might have.
These are some of the worst legal mistakes you can make in your business. By following this advice, you should get off to a better start and avoid making these mistakes again.