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Common legal blunders that can derail a small business

For many small business owners in Colorado, dealing with legal issues can take away from the more essential aspects of entrepreneurship. To this end, being aware of common legal mistakes can prevent a serious lapse of judgement from occurring, while also ensuring a business has the best possible chance of success.

Forbes provides a listing of legal missteps all small business owners should lookout for, including not establishing solid guidelines in regards to human resources. Many lawsuits arising in one’s place of work begin with an easily preventable HR issue, whether that entails violation of labor regulations, instances of harassment or some other occurrence. Enacting a policy and making certain all employees are aware of what constitutes proper conduct in the workplace can spare quite a bit of legal hassle down the line.

Inadequate online security can also pose a risk of lawsuits, especially when it comes to protecting sensitive customer data. Recent years have seen many large companies falling victim to online security breaches, and this risk is often increased when it comes to small business commerce. Accordingly, securing customer data must be a top priority for a small business’s IT personnel, which will not only prevent damaging lawsuits but can also increase customer confidence.

Small businesses can face a few additional hurdles, according to Entrepreneur. Complying with the most current government regulations is an ongoing problem for many business owners, one that can result in exorbitant fines and penalties if compliance is not maintained. For instance, as a business grows owners will be obligated to provide employee healthcare and may run afoul of government regulations if these benefits are not afforded in a timely manner. 

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