Entrepreneurs in New Jersey may be interested in learning more about avoidable mistakes that many small businesses are susceptible to making. Often times, these costly errors eventually manifest in the future because ownership neglected to address certain details during the initial business planning or formation phase. This often leads to organizations fending off preventable lawsuits or investing in rebranding campaigns.
Simply having a discussion about potential issues early on may be enough for to help avoid the legal disputes from occurring later. Some businesses encounter problems later on because they fail to perform the appropriate degree of diligence when screening for trademark protections and availability. In order to avoid being targeted by a lawsuit filed from an entity with superior rights, many businesses are advised to file the intent to use trademark application before products are released to the market.
Businesses also encounter problems because they misclassify employees and independent contractors on the payroll. If a misclassified employee feels victimized by a wrongful termination, they may be in a position to expose the employer for alleged labor law violations. Employers are advised to reclassify these workers whenever the discrepancy becomes apparent. Owners and company officers can also create legal problems when personal finances become comingled with business capital. Failing to form a legal entity recognized by the state may be another way to increase the risk of legal problems occurring in the future.
People who need more information about business formation typically benefit from consulting a lawyer. Legal counsel may be able to help aspiring entrepreneurs gather the documentation needed for developing a thorough business plan that could be approved by a lender. Lawyers may also be prepared to review new contracts for any terms that could be problematic for the business’s long-term interests.
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