Who hasn’t dreamed of starting their own small business at least once? Many companies are open every year, but more than two-thirds of entrepreneurs do not stay on the market for more than two years. Sometimes, doing business is a much more difficult and complex process than it seems. For example, every business owner faces the need to understand the laws sooner or later.

Keep reading this article to learn about the specifics of the laws applicable to small businesses.

1. Choosing A Corporate Form

The first important decision from a legal point of view is the choice of the form of your business. You can register as an individual entrepreneur if you plan to provide services to clients independently or open a larger company by assigning it the status of a limited liability company. You can also run a business in partnership and officially register it according to this status.

In any case, you will need to familiarize yourself with the description of various legal forms of doing business or consult with a lawyer.

2. Starting Contracts

When running any business, you will probably conclude contracts either with clients or with other companies, so you need to understand what requirements are put forward in relation to these securities. For example, some contracts may be expressed in the obligations of the two parties agreed verbally, while others must be signed by both parties.

Particularly stringent requirements are usually put forward for contracts in which large amounts of money are included.

3. Conflict resolution

We have already mentioned that it is necessary to pay attention to the correct execution of contracts. This is also important because the client or the company with which you have collaborated may have a claim about the services provided. Do not be afraid of a possible trial in an arbitration court. The main thing is that all your documents are drawn up correctly, and the services are provided in the way specified in the contract.

That is why it may be a bad idea to stipulate all the terms of cooperation verbally.

Employment Rules

Even if we are talking about the smallest company, a business owner probably plans to hire at least a couple of employees to delegate responsibilities and ensure the good quality of services provided. In this case, you should make sure that your employees are provided with all the necessary amenities that they are entitled to according to the labor legislation.

Remember that discrimination, payments below the minimum wage, and the absence of rest breaks are something for which employees can file a lawsuit against you.