Exeleon Magazine

Most Common Business Legal Issues That You Must Know

Common Business Legal Issues

As a new or experienced owner, there are some common business legal issues you will face. However, you can prepare yourself well by knowing what they are. Often you may not even know something is breaking the law. So, stay prepared and consult your legal department and follow the below mentioned most common business legal issues.

Licensing and Royalties

One of the major headaches for businesses these days is that of copyright, licensing, and royalty payments. For instance, most retailers play background music, however, you may not be aware that you need a license to do this, and you can be hit with a hefty fine.

Fortunately, there are services that take care of this for you. For example, your wellness center can benefit from spa music streaming provided by Sirius XM Music for Business while you do what you do best.

Shareholder Rights and Contracts

If your organization has more than just a single owner, you should definitely make an agreement. Someday, the business might be split up or sold, and if there isn’t an agreement, there could be substantial legal battles.

Even if shareholders are getting along well, things can always go wrong, hence it’s best not to leave any questions about who gets what. The arrangement should be pre-written by a lawyer who has experience with these forms of legal contracts.

Trademarks

Small businesses also run into legal problems with trademarks more often than you might think. Thus, it is imperative to do a lot of research before naming your enterprise or services. If you can think of a name, there’s always a chance that someone else ha

s too, and it’s conceivable that the other company already owns the trademark for that name. Regardless of whether it was an innocent mistake, stepping on someone else’s trademark can get you into a lot of trouble with the law, making this another common business legal issue.

Firing Employees

People are often hired because they seem way more qualified than they actually are. Or you discover they don’t fit in with the way your company works. Lucky for you, if you take the proper steps before firing someone, you can reduce the chance of any potential legal trouble.

This starts with putting the rules of the job in an employee handbook and keeping a record of any disciplinary actions taken against the employee. You can get help with this from a business and employment lawyer.

For companies working with independent contractors overseas, it’s best to have a global payroll strategy in place to avoid untoward tax and labor law issues.

Confusion About Overtime

Overtime is usually any work that goes beyond the basic hours written into a contract. Workers can agree to work longer than their contracted hours as long as they follow the rules. This deal has to be written down and signed by both you and your employees.

But there can be disputes. Thus, make sure your overtime rules are well-defined and that all overtime is approved ahead of time. This will help you keep track of your money and keep you out of trouble with the law.

Summary

Business can be something of a minefield from a legal perspective. Common business legal issues include licensing and royalties, trademark disputes, and confusion about overtime hours.

Make sure to deep dive into these legal issues and consult with the right person before starting and expanding your business.

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