Every company faces legal risks, no matter its size or industry. To protect their businesses and assets, understanding risk and compliance is essential for owners and stakeholders. If your business is not compliant with official rules and regulations, you may find your company wrapped up in costly litigation.
Consequently, your organization will spend time and resources fighting legal battles that could have potentially been avoided. Business owners need to prioritize the implementation of an effective legal risk mitigation system. Our team reviews ways for an established business to do that.
Common Legal Risks for Businesses
The term “legal risks” can encompass a range of scenarios, from poorly drafted contracts to failures in complying with regulations. Companies must be aware of these potential threats and take proactive steps to reduce the likelihood that they will occur.
The most common legal risks that businesses face include:
Your business could face a contractual legal risk if it breaches a contract by not performing necessary contractual obligations.
A contract management system can help ensure that your contracts are enforced and managed in a way that minimizes your legal risk.
Violation of Employment Laws
There are many employment laws for businesses to follow, which ensure that employees do not experience wrongful termination, harassment, or discrimination.
If a business owner breaks or allows others to violate these employment laws, they could be involved in a lengthy and expensive lawsuit, not to mention they can harm a company’s reputation and brand.
Violation of Tax Laws
Tax violation is one of the most common legal risks that companies face. Tax law is incredibly complex, and figuring out all the obligations your business is subject to can be easy to misinterpret.
Tax-related offenses can hold severe penalties, including heavy fines and even prison sentences. Because of this, it is always worth it to contact a reputable attorney to audit your business independently.
Learn More > Does My Business Need to Hire an Attorney?
How Established Businesses can Limit their Risk
Every company, like every client, is different. That’s why you should always seek experienced counsel for your unique situation. It’s our mission to help navigate and mitigate your legal risks. Generally speaking, our attorneys can help in a variety of ways:
#1. Ensuring You Understand the Contracts You’re Signing
As a business owner, you must only agree to or sign off on contracts that you understand. This might require hiring a legal team to review the agreement with you.
#2. Keeping Up to Date on Changing Regulations
Staying up to date with new or changed regulations and legislation can help you avoid serious legal risks.
#3. Ensuring Proper Business Conduct
Ensuring that your company’s codes of conduct and ethics are understood by employees encourages proper business conduct. You can achieve this by creating an employee handbook that explains your business rules and policies.
Make sure that employees understand the repercussions of not following your code of ethics. Doing so should reduce discrimination, harassment, and other issues in the workplace.
#4. Follow All Relevant Tax Laws
The best way to avoid committing a tax-related offense is to keep track of your company’s finances and accurately file your tax returns when due. This may require hiring a professional accountant.
#5. Hire an Experienced Legal Team
Hiring a legal team is ultimately the most effective way to mitigate potential risks. An attorney can notify you of any issues proactively and can help guarantee that your business meets all current legal requirements
Minimize Your Legal Risk; Contact The Frazer Firm Today
Having the proper knowledge to manage and mitigate legal risks is crucial to the success of any company. This is why it is essential to get the right legal advice for your unique situation. Our experienced business attorneys at The Frazer Firm are ready to help you stay compliant with all regulations and avoid common legal risks.
Contact our Jupiter, FL law firm today at (561)295-1551 for a consultation. We are ready to help mitigate the risks your business faces. It’s our business to protect yours.
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