Legal mistakes can be costly, both financially and reputationally. It is important to understand your legal obligations to avoid making them.
Here are some of the most common legal mistakes that businesses in Canada make:
Not incorporating: One of the most common legal mistakes that businesses make is not incorporating. Incorporation creates a separate legal entity for your business, which protects your personal assets from business liabilities, but be wary that may not be the case if you are a professional corporation.
Not having a written contract: Another common mistake is not having a written contract in place with customers, suppliers, and employees. Written contracts help to avoid misunderstandings and disputes.
Not protecting intellectual property: Businesses should take steps to protect their intellectual property, such as trademarks, copyrights, and patents. Intellectual property can be valuable assets for a business.
Not following employment laws: Businesses must comply with all applicable employment laws, such as minimum wage laws, overtime laws, and discrimination laws. Failure to comply with employment laws can result in costly lawsuits.
Not paying taxes: Businesses must pay all applicable taxes, such as income tax, sales tax, and payroll taxes. Failure to pay taxes can result in penalties and interest charges.
Keep good records, this will help you to comply with all applicable laws and regulations. Have a risk management plan in place to help you to identify and mitigate potential legal risks. Get regular legal advice helping you to stay up-to-date on all applicable laws and regulations and to avoid legal problems.
If you are unsure about your legal obligations, it is always best to consult with a lawyer.
This article is for informational purposes only and is not legal advice. Contact us today to discuss your specific situation.