Everyone knows that setting up and running a small business is a lot of hard work. Especially since you need to comply with all the rules and regulations. This means dealing with taxes, protecting intellectual property, ensuring workers have the right contracts, and more. All the while, you have to deal with the joys of bureaucracy, red tape, and a big pile of paperwork.
Of course, not doing everything correctly may result in penalties, fines, and lawsuits. These could have a huge impact on your business. Indeed, 36% to 53% of small businesses are sued every year with resolutions costing anywhere from $3,000 to $150,000. However, using the right legal services and software will significantly reduce that risk and help your business grow.
Of course, there are a lot of legal problems that small businesses face, but there are a few issues that happen more frequently. Some new companies even make mistakes from the beginning by using the wrong business entity, which means your business could end up paying the wrong tax. For example, in an S-Corp business taxes are paid by the business owner and not the company itself. Meanwhile, if your business is a sole-proprietorship it increases your personal liability, which is why companies often choose an LLC structure instead.
Then there’s the day-to-day running of your business, and many companies struggle with employee management. Small businesses generally don’t have HR departments, so staying legal while hiring and firing employees is difficult. For instance, when employees are misclassified, this can result in payroll issues and impact a worker’s compensation and benefits. When it comes to dismissing employees, there’s a lot to consider too, such as anti-discrimination laws, immigration status, and contract violations. Any of these can come back to bite you in the future.
There are plenty of online services that offer small businesses help to stay within legal parameters, each with its own specialties. Here we recommended some of the best solutions for small businesses on the market.
Navigating legal matters can be complicated and expensive, especially for individuals and small businesses. It’s precisely because of this that Rocket Lawyer exists: to simplify the process by offering an accessible, affordable, and comprehensive suite of legal services online. Whether users are just looking to draft legal documents, seeking legal advice, or forming a new business, Rocket Lawyer provides essential tools for all their needs in a simple and effective way. While most services can be purchased individually, the company also offers memberships, which end up cheaper for those who need regular assistance. Prices start at $19.99 per month, and users can get a discount of up to 50% when opting for a yearly plan. Rocket Lawyer provides a handy 7-day free trial to get a taster of what the service can provide.
If there is one thing people can’t stand it’s doing their taxes. Going through all those different documents that seem like they have been worded by aliens is pure torture for anyone. So it’s not surprising that once taxpayers find a solution that prepares their taxes and explains the process in plain English, they stick to that solution no matter what. This is the secret behind TurboTax‘s success, a company that has been helping people deal with those pesky tax returns since the 80s. TurboTax Online, the company’s online tax prep solution, provides everything that a taxpayer needs to create accurate returns. The user-friendly interface of the software is particularly important, but so too are the thorough interview questions. There are a number of additional extras, too, all of which will help you receive the biggest possible refund in the end. And this, believe it or not, is just the surface, since not only is TurboTax fully supported on mobile platforms but it’s also very safe to use thanks to the outstanding built-in and optional security settings.
According to the U.S. Bureau of Labor Statistics, more than 20% of businesses fail within the first two years. The reasons vary between not having the right business plan, a lack of online presence or strong marketing, or even failing to be tax compliant, leading to a flood of state fines. Therefore, it’s clear many business owners need guidance when setting up and running their businesses. That’s where formation services – such as BetterLegal – come in, protecting your business and taking care of its legitimacy, as well as informing you of any potential tax benefits. Operating since 2017, Texas-based BetterLegal has been offering staggering turnaround speeds and transparent fees, along with a centralized dashboard for intuitive management – three features that make this service stand out from its competitors. In other words, choosing BetterLegal means getting all the business-related bureaucracy quickly out of the way without having upsells or unnecessary advertisements thrown at you, which fits with the company’s motto: “only what you need, nothing you don’t”.
Incorporating your business can be an unpleasant and time-consuming experience; that’s why having a reliable service that takes on the hassle of completing all the necessary documents can seem like a godsend. Founded in 1998, California-based MyCorporation is one of the leading document-filing services in the U.S. and has been helping owners with the process of business formation for over two decades. Its trustworthy professionals and wide range of features make it a smart choice for anyone seeking to create and maintain a legitimate business, regardless of the field. Although its strong points are incorporation and limited liability company (LLC) services, MyCorporation’s areas of expertise don’t end there: it also offers trademark searches and applications, copyright registrations, DBA registrations, and much more. However, since it’s not the cheapest option out there, purchasing this software is a big commitment. Thankfully, you get a risk-free 60-day refund to see if MyCorporation lives up to your standards.
Finding and filling out the appropriate form can be stressful, especially when dealing with personal matters or if there’s a business on the line. However, with more than 85,000 legal forms in its online library, US Legal Forms prepares its customers for every situation. Lawyers, medical professionals, real estate agents, or anyone needing a legal form can find what they are looking for in US Legal Forms’ endless bank of legal resources. Moreover, some of the documents are catered toward businesses, whether an LLC in its early stages or a sole proprietorship. It’s also useful that every form is state-specific, editable, and can be packaged together with other documents, keeping everything in one place. US Legal Forms already offers its services at reasonable prices, but it’s possible to get a discount of up to 80% by choosing an annual plan. Plus, users are always taken care of by the company’s comprehensive customer support.
While it’s not the most glamorous part of running a business, paperwork is unavoidable and it’s important to have everything in order. Firstly, you need a business plan, and while this isn’t a legal requirement, it’s necessary to have a plan showcasing your road map to success in order to secure financing.
When it comes to your employees you must make sure you have the right documents. Contracts are especially important, and you need to carefully consider what to include in them, like benefits, time off, confidentiality clauses, noncompete clauses, probationary periods, non-disclosure agreements, and more. Also, you need to consider having an employee handbook, allowing you to set expectations and help new employees succeed in your company. In the handbook, you can lay out your company policies, terms of employment, and code of conduct.
When you’re dealing with customers, you need to remember to lay out your terms and conditions. These terms allow you to have a mutual understanding with your customers as well as avoiding any misunderstandings. Similarly, you need to have a privacy policy to ensure that you will guard your customers’ personally identifiable information. This should outline how you will protect names, addresses, IP addresses, phone numbers, and any other kind of data. There are also rules as to where your privacy policy is posted, so you can’t have it tucked away on your website.
Juggling everything is difficult, but there are a few things you always need to focus on. One of the most important of those is your employment obligations as you must ensure your workers are safe and follow labor laws.
Every business should always protect its intellectual property. That certainly true for small businesses for many it counts a large part of its corporate value – counting up to 70% for some. And since your product is what makes your business unique, it needs to be protected. Intellectual property covers copyrighting exclusive content, registering trademarks (including designs, symbols, and phrases), patenting inventions, and more. But you have to remain vigilant and consider that you may have to send takedown notices, cease and desist letters, or even sue copyright infringers at any moment.
You need to pay attention to your records too, especially when it comes to your stock levels and the IRS. Online accounting software gives you the ability to track everything in your inventory and is certainly far easier than relying on manual record keeping. Similarly, using tax software to ensure that your business’s returns are done perfectly will save you a headache and help you avoid any potential penalties.
Legality is just one of a large number of factors small business owners have to consider. One of the other big challenges is staying on top of your company’s finances. Fortunately, there is financial software available to help you keep track of your spending and avoid necessary losses. But you also need to rely on your employees to help take your business to the next level, so you can invest in productivity software that will help them perform to their very best.
The Best Reviews team researches and tests all products first-hand. We've been reviewing products and services since 2012 and are proud to only publish human-created content.
Share your thoughts, ask questions, and connect with other users. Your feedback helps our community make better decisions.
©2012-2025 Best Reviews, a clovio brand –
All rights
reserved
