10 Legal Mistakes in Business
Posted: Thu Jan 23, 2025 4:47 am
Refusal of the services of a competent lawyer
Consulting a lawyer before opening a company, especially at the stage of preparing registration and constituent documents, can save a business from many mistakes. Yes, today you can easily find a standard example of a charter on the Internet, as well as any other document or application. However, how suitable is it specifically for your business? Where is the guarantee that this document does not contain provisions that over time can lead to losses or negatively affect the activities of the enterprise? Saving on the services of a lawyer can subsequently cost more than a competent consultation with a professional at the registration stage.
Refusal of the services of a competent lawyer
Wrong choice between business organization forms (LLC or sole proprietorship)
Each organizational and legal facebook database form of doing business has its advantages and disadvantages. When choosing it, consider the possible prospects, and evaluate both positive and negative development scenarios. If, for example, you are registered as an individual entrepreneur and were unable to repay a targeted loan for business development, you will have to answer for debt obligations with your own property.
Equal shares for all business founders
It is not advisable to divide the authorized capital into equal parts between all co-founders - the package of one of the partners must necessarily be larger than that of the others. In the conditions of equal shares, if difficult or controversial situations arise, it will be impossible to resolve them by a majority of votes - as a result, the work of the entire business will hang until the participants voluntarily come to a unified decision, which can take a very long time.
Equal shares for all business founders
Provide special additional conditions in the company's charter to compare the rights of all founders, regardless of the size of their share in the authorized capital.
Refusal of accountant services for maintaining primary document flow and accounting
Accounting for individual entrepreneurs on a simplified tax system is not mandatory. However, it is necessary to systematize the document flow at any enterprise. This department is not just a useful link in the business processes of the organization. If you cannot afford to hire an accountant when starting a company, use the services of an outsourcing company, and hire an operator to draw up primary documentation.
Consulting a lawyer before opening a company, especially at the stage of preparing registration and constituent documents, can save a business from many mistakes. Yes, today you can easily find a standard example of a charter on the Internet, as well as any other document or application. However, how suitable is it specifically for your business? Where is the guarantee that this document does not contain provisions that over time can lead to losses or negatively affect the activities of the enterprise? Saving on the services of a lawyer can subsequently cost more than a competent consultation with a professional at the registration stage.
Refusal of the services of a competent lawyer
Wrong choice between business organization forms (LLC or sole proprietorship)
Each organizational and legal facebook database form of doing business has its advantages and disadvantages. When choosing it, consider the possible prospects, and evaluate both positive and negative development scenarios. If, for example, you are registered as an individual entrepreneur and were unable to repay a targeted loan for business development, you will have to answer for debt obligations with your own property.
Equal shares for all business founders
It is not advisable to divide the authorized capital into equal parts between all co-founders - the package of one of the partners must necessarily be larger than that of the others. In the conditions of equal shares, if difficult or controversial situations arise, it will be impossible to resolve them by a majority of votes - as a result, the work of the entire business will hang until the participants voluntarily come to a unified decision, which can take a very long time.
Equal shares for all business founders
Provide special additional conditions in the company's charter to compare the rights of all founders, regardless of the size of their share in the authorized capital.
Refusal of accountant services for maintaining primary document flow and accounting
Accounting for individual entrepreneurs on a simplified tax system is not mandatory. However, it is necessary to systematize the document flow at any enterprise. This department is not just a useful link in the business processes of the organization. If you cannot afford to hire an accountant when starting a company, use the services of an outsourcing company, and hire an operator to draw up primary documentation.