When it comes to running a business there is always the possibility of legal action being taken against what you are working so hard to build

Below we will give a brief overview of the 3 most common legal issues people will require legal help with for their business.

1) Failure of Payment or Failure of Fulfillment

Let’s use an example; Billy and Suzy. Billy and Suzy have entered into an agreement and let’s say Billy didn’t pay Susie for the service Suzie provided to Billy. Or another common situation is Billy pays Suzy to perform a job but Suzie doesn’t do what she was paid to do.

These are really the two extremes. Either a person who said they were going to do something doesn’t do it, or the person who said they were going to pay for the service doesn’t do it.

While these are the two extremes, they are also extremely common. If you experience this while dealing with another business or your business is being accused of this then consider hiring Business Legal Management. We are able to help you get the money/service you deserve or completely redo the contracts for your business so it doesn’t happen again.

2) Handshake to Heart Contracts

Using our good friends, Billy and Suzie again. Let’s say these good friends decide to go into business together, they’re going to start an ice cream business. The idea, the recipe, the production are all done by Billy and Suzie is responsible for the marketing and sales side. Billy and Suzie are good friends and they decide that Suzie’s contribution will get her 25% of the business.

As soon as the business kicks off, that kind of agreement has to be written down. Unfortunately, business owners are too busy to write these things down. 

Everything needs to be written down, and I mean everything; write down roles, write down responsibilities, write down the capital table, write down everything. It doesn’t matter if you are going into business with your lifelong friend or even your parents. Because you never know what kind of situations could crop up down the road and you can save yourself time and money by having documentation.

3) FTC Compliance

The third most common issue business owners come to us for has to do with the industry their business is in. Here at Business Legal Management, one of the industries we often see and are able to help are the businesses involved in direct selling. 

These businesses will come to us and ask us to review their marketing content to make sure it is FTC compliant. They want to advertise whatever it is their business is looking to promote and they don’t want to be sued for it.

The FTC, or Federal Trade Commission, which is a US governing body, makes sure that everybody in business plays nice in the buying and selling world and if your direct sales company puts out a marketing campaign and someone says you are providing false marketing, the FTC will come to you and fine your company $43,000 for every misrepresentation [source]

So if you have one bad employee who does the false advertising on Facebook, Instagram, Tik Tok, YouTube, and Google, that’s 5 counts and your company could now potentially owe over $200,000 because of these incidents.

If you or your business is in need of quality legal counsel at a fraction of the price, consider reaching out to Business Legal Management today. We can schedule a free consultation to discuss whatever legal issues you are facing and form an actionable plan.