Common Small Business Legal Mistakes

How much capital will each person contribute?

What happens if the business needs more capital?

What happens if one person leaves the business?

What happens if one person dies?

Will the stock or partnership interest be bought back from the estate of the deceased or from the person leaving the business?

Getting Involved in Litigation

Litigation fees can be astronomical, and they can quickly drain management time and resources. Consider alternative means of dispute resolution, such as mediation or arbitration. Or, if a reasonable settlement offer is available, think seriously about taking it instead of spending more time in litigation.

Ignoring Intellectual Property Issues

Even low-technology companies have intellectual property issues that may be important for the future success of the business. For example, do you require your employees and consultants to sign Confidentiality and Invention Assignment Agreements? Have you registered for a trademark for an important company logo or product? Do you put copyright notices on your written information? Are your trade secrets adequately protected?