Founding Attorney
As a small business owner in Fort Worth, you’re probably focused on growing your company and serving your customers—which can make it easy to overlook potential legal issues. Unfortunately, even simple mistakes can lead to major headaches or put your business at risk. Having the right legal support can help you avoid costly problems and keep your business on track.
Here are some of the most common pitfalls small business owners face:
Pitfall #1: Skipping Proper Business Formation
Many small business owners jump right into running their businesses without formally setting up a legal structure, such as an LLC or corporation. But skipping this step or choosing the wrong structure can lead to unexpected tax issues and even personal liability if something goes wrong. Working with an experienced business attorney can help Fort Worth entrepreneurs choose the right legal structure and make sure their business is properly registered with state and local authorities from the start.
Pitfall #2: Poorly Drafted or Missing Contracts
Small business owners may start out with handshake deals or use free online templates to put agreements in writing. While that might seem simple and cost-effective, these types of agreements often don’t fully protect your business. Verbal promises and generic templates can leave out important details—or include confusing language—that leads to disputes later on. Having customized contracts drafted or reviewed by an attorney ensures your agreements are clear, relevant, and built to protect your business’s best interests.
Pitfall #3: Ignoring Employment Law Compliance
Even small businesses with just one or a couple of employees must comply with state and federal employment laws. Mistakes can lead to substantial liability for the company, such as:
- Misclassifying employees as independent contractors, tipped employees, or employees exempt from overtime
- Not keeping track of workers’ hours, potentially leading to minimum wage and overtime violations
- Failing to implement workplace policies against discrimination or harassment
- Denying job-protected leave under the Family and Medical Leave Act
- Not purchasing workers’ compensation insurance, which can expose a small business to lawsuits from injured workers
A small business attorney can help you abide by state and federal employment laws, making it easier to stay compliant and avoid potential problems. With the right legal guidance, you can reduce the risk of complaints to the Texas Workforce Commission, the U.S. Equal Employment Opportunity Commission, or even lawsuits from employees.
Pitfall #4: Overlooking Intellectual Property Protection
Small business owners may not realize how important it is to protect their intellectual property, such as trademarks like brand names and logos, patentable inventions, and trade secrets. Without these protections, it can be harder to defend your brand if copycats emerge, potentially harming your reputation and forcing you to spend time and money rebranding or repairing your image.
Failing to patent an invention means other companies could legally copy or produce your product if they figure out how to do so. Similarly, businesses sometimes overlook trade secret protections, such as using non-disclosure agreements with employees or partners and limiting access to confidential documents. Without these safeguards, you could lose legal protection for your most valuable business information.
Pitfall #5: Delaying Legal Help Until a Crisis Occurs
Finally, another big mistake small business owners can make is waiting until a legal crisis occurs—like a regulatory investigation, audit, or lawsuit—before seeking help. By that point, chances to resolve issues more easily or avoid bigger problems have passed. Having a trusted attorney on your side from the start, however, allows you to spot potential issues early and take action before they turn into serious legal challenges.
Contact a Business Attorney Today
Running a small business in Fort Worth is rewarding—but even minor mistakes can put your company at risk. The Law Office of Carey Thompson, PC is here to help. Schedule a confidential consultation with an experienced small business attorney today and get the guidance you need to start, protect, and grow your company and succeed with confidence.