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Note: Our collaborative Blog provides insights on ‘3 Top Tips To Keep Your Company Out Of Legal Trouble.’

The following paragraph is very telling and confirms what I witnessed over the years. Although I may appear to be fearless in attempting new business strategies, the opposite is true when using caution for not overstepping boundaries. Should you want to remain in business for the long term, it is wise to review the suggestions below regarding 3 top tips to keep your company out of legal trouble.

A Small Business Administration (SBA) study revealed that 36% to 53% of small businesses surveyed had to battle a lawsuit every year. As such, it isn’t uncommon for American enterprises to encounter legal issues in their operations. Consequently, it would be best to handle your legal matters proactively instead of waiting to hire attorneys only after getting into legal trouble. If you wish to know more about keeping your company out of legal hot waters, take a look at the points below.


3 Top Tips To Keep Your Company Out Of Legal Trouble

  1. Select A Distinctive, Non-infringing Business Name
Names indicate much so research thoroughly before selecting one.

Select Domain Names Wisely.


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There are reportedly 5,000 to 6,000 patent case filings in America annually. Consequently, it is prudent to ensure that your business, product, or service trademark name does not infringe on any third-party’s right. For this, you can conduct thorough searches of business records, the internet, and the US Patent and Trademark Office’s database. Additionally, look through domain name databases for your preferred name and similar variations to discover whether it is available for use and registration in the country. A comprehensive trademark search will minimize your risk of getting a ‘cease and desist’ letter as well as getting sued, so keep this in mind.

  1. Get Professional Help to Remain Compliant

Compliance is crucial for business because the law requires you to obey the rules and standards relevant to your industry. A compliance program can help your company avoid harmful exposure, steer clear of lawsuits, retain staff, and improve its bottom line. Consequently, consider getting professional help to ensure that you remain compliant in your industry to minimize your legal risks. For instance, you can hire a CPA to offer accounting services centered on tax and audit-related compliance. This way, you can file your taxes correctly and avoid running into any trouble with the IRS. 

Furthermore, you can hire a trusted attorney who can keep up with changing laws and regulations within your industry so they can advise you on which changes to stay on top of. In addition, investing in particular software might be worth considering to keep you compliant. For instance, customer identification software is necessary to get to know your clients and perform due diligence. 

There are numerous risks of doing business with entities and individuals engaged in risky behavior. Therefore, investing in this software is essential to obtain accurate insights to make important decisions about your company, vendors, and customers. This way, you can avoid offering services to customers who are a security risk, preventing your company from getting into legal trouble in the long term.

  1. Prioritize Written Business Contracts

Breach of contract lawsuits are commonly filed against US businesses, so it is vital to prioritize written business contracts. As such, ensure that your company has contracts when dealing with employees, independent contractors, business partners, and clients. These contracts may include license agreements, partnership agreements, professional service agreements, website agreements, among others. 

Written business contracts are essential because, without them, there is no proof of any agreement between your company and the entities with which it deals. Therefore, always specify the terms of any deal in written contracts to eliminate misunderstanding, protect your rights and interest, and lessen the possibility of lawsuits in the future.


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Sales Tips:  Keep Your Company Out Of Legal Trouble

  1. Question details you do not understand before authorizing anything.
  2. Dig deep to realize if there are further ramifications to the agreement and anything in question.
  3. Be forthright and convey what you will and will not accept.
  4. Read facial expressions as you discuss the details of the contract before you.
  5. Upon noticing a change in facial expression or body movement, stop to ask questions.
  6. Do not rush into an agreement but do your due diligence first.
  7. Hire legal help to review the contracts before authorizing them.
  8. Research the company history for possible previous lawsuits.
  9. Check for prior customer and partner reviews.
  10. Celebrate Success!


Today’s insights are provided to help you achieve the Smooth Sale!


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