We all get so busy running our business that it is easy to overlook potential pitfalls (also known as legal issues) that could cost thousands of dollars in legal fees and claims, as well as take you away from running your business.  

Learn key questions every business owner should ask to protect themselves from legal pitfalls.

In my 35 years practicing law, I have seen the many problems businesses encounter.  Many could have been avoided with an ounce of prevention, as the saying goes, which is better than a pound of cure… so without further adieu, here is a checklist for areas that become business legal risk pitfalls (often very expensive):

Employment Law:

  • Do you have employees?
  • Do you have Non-Compete/Confidentiality Agreements?
  • Do you have workers’ compensation?
  • Are your employees independent contractors?

Contracts Reviewed:

  • Are your important agreements in writing? Trusting Handshake Agreements; bad idea… put them in writing.
  • Do you update the contracts you have with your customers, suppliers, etc and have you read them?
  • Do your contracts have automatic renewals?
  • Do your contracts provide in a dispute that you have to litigate in another state?

Corporate Structure:

  • Is your business incorporated as a corporation or limited liability company?  
  • Have you maintained your corporate records?
  • Have you paid your annual corporate registration fees?
  • Do you have business partners, and if so, do you have a written agreement between your partners?
  • Do you have a business succession plan?

ADA Compliance:   

  • Is your business open to the public, and if so, is it in compliance with the Americans with Disabilities Act? If you own, lease, or operate a place of public accommodation (e.g., restaurants, retail stores, hotels), your physical premises must be accessible. 
  • If you own commercial property, are your tenants ADA-compliant?
  • Does your business have a website, and is it ADA-compliant?

Intellectual Property:

  • Neglecting Intellectual Property (IP): Failing to secure trademarks, copyrights, or patents leaves your unique branding, content, and inventions vulnerable to theft by competitors.
  • Are you infringing on someone else’s IP?

Software Licenses: 

  • Do you audit software licenses?
  • Do you know that your software provider can most likely audit your use pursuant to their End User License Agreement?

Miscellaneous Pitfalls:

Marketing

  • Are you in compliance with the Telephone Consumer Protection Act (TCPA)? The TCPA  protects consumers from unwanted, intrusive, and harassing telemarketing communications, including voice calls, SMS text messages, and faxes. If you use lead companies, send out texts, or make sales calls, you need to ensure compliance and have a written TCPA compliance plan. 

Data protection and privacy laws 

  • How do you safeguard customer data? Failing to properly do so can lead to breaches, tarnishing your brand’s reputation and incurring legal penalties.  

Insurance 

  • Have you reviewed your insurance policies?  Do they provide coverage for data theft, ADA claims, TCPA claims, etc.  What exclusions are lurking in all that policy language no one reads?

30-Minute Business Legal Review

We are happy to provide a free 30-minute business review to delve further into these areas. 

To schedule, please email me at mjlober@lddlawyers.com and provide some general information about your business (a link to your website is probably sufficient).

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