There are common legal issues small businesses face

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There Are Common Legal Issues Small Businesses Face

Organizing a business and legally starting it is just one of many steps a small enterprise in New Jersey must take in order to get the operation up and running at a profit.

Along the way, businesses will no doubt face other legal issues. These common legal issues can affect businesses in any part of the country.

Employment laws can be difficult to navigate

For one, if a small business is going to have employees, the owners will have to navigate through several different federal and state laws.

For example, hiring, firing, disciplining or even promoting employees has to be done in accord with laws written to prevent discrimination and other unfair treatment.

Even well-intentioned employees can easily run afoul of these laws innocently, but the penalties for violating them are still serious.

Likewise, a small business will need to be familiar with workers’ compensation laws, laws pertaining to unemployment benefits and other laws and regulations related to employment.

Likewise, business owners also have to be careful how they classify their employees and, if they use them, independent contractors. Proper classification for minimum wage and overtime purposes ensures that workers get properly paid according to the law. Again, it is easier to run afoul of these laws than one might think.

In addition to complying with employment laws, businesses also have to follow complex laws in many other respects. For example, a business may need to satisfy licensing, permitting and other regulatory requirements on the local, state and federal levels.

A business will also need to be sure that their name, brands and products and services do not run afoul of trademark and other intellectual property laws.

Finally, it is also important for businesses to remember that are times when it is really best to avoid solving a dispute in court. Pursuing litigation can drain resources quickly, and the end result may not be worth the cost.


Michael Ritigstein is a Founding Partner of the firm concentrating his efforts in supporting the firm's litigation, corporate and estate matters. Mr. Ritigstein graduated from the University of Delaware in 1996 and Seton Hall University School of Law in 2000. In 2007 he received a Masters of Law in Taxation with a concentration in Estate Planning, from Temple University's Beasley School of Law.

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