While entrepreneurs and small business owners may be adept at growing an enterprise from the ground up, they may miss on critical legal elements that could lead to big problems as their businesses expand. Even the most savvy business people know that minimizing legal problems is the key to growing a business. With that, we highlight through this post two of the most common fears that business owners and entrepreneurs may have and what can be done to address them.
Can my personal assets be compromised? – If you have established a corporate entity for your business, chances are that the answer to this question is “yes.” However, it is possible for the corporate veil to be “pierced” by creditors who want to collect on debts established through the corporation. How is this possible, you may ask? You could be held liable when you sign credit applications where you agree to he held personally liable, or if you constantly commingle funds between your business and yourself.
How important is paying my payroll taxes? –In a word, it is critical. Failing to pay your payroll taxes could lead to a very long (and expensive) experience with the Internal Revenue Service. After all, paying employment taxes is a central to your responsibility as an employer. So hiring a payroll processing company to collect federal and state income taxes, FICA taxes (i.e. Social Security and Medicare taxes) could protect you from liability should Uncle Sam come calling.
If you have questions about other legal issues that you are concerned about, an experienced business law attorney can help.