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Could You Make This Mistake with Your Small Business?

Running a business comes with countless responsibilities; even the most diligent owners can let important details fall through the cracks. Unfortunately, even a single oversight can result in costly litigation, especially when your business is just getting off the ground.   

To help you avoid these pitfalls, Richards Rodriguez & Skeith have outlined common legal mistakes Texas businesses make and how to avoid them. 

Registering Your Business Properly

One of the most critical first steps in starting a business is registering it as a legal entity, such as a corporation or limited liability company (LLC). Failure to do so can leave you personally liable for business debts or lawsuits. Protect yourself by consulting an attorney to determine the best structure for your business and completing the necessary filings with the state. 

Improper Contracts – Or Worse, Not Reading Your Contracts

Contracts are the backbone of any business relationship, whether it’s with suppliers, customers, or employees. Using vague or incomplete agreements — or failing to read them thoroughly — can lead to misunderstandings or disputes.  

Always have a legal professional draft or review your contracts to ensure they are clear, comprehensive, and enforceable. 

Read Our Blog: Read the Contract 

Protecting Your Intellectual Property

Your business’s intellectual property (IP) is one of its most valuable assets.   

Competitors or even former employees could exploit your ideas without proper IP protections in place. Richards Rodriguez & Skeith helps businesses secure patents, trademarks, copyrights, and trade secrets, safeguarding their competitive edge. 

Not Complying with Labor Laws or Insurance Requirements

Labor laws and insurance regulations are complex and ever-changing. Non-compliance can lead to fines, lawsuits, or even the shutdown of your business.  

Ensure that your hiring practices, employee classifications, and workplace policies align with state and federal laws. Also, confirm that your company carries the appropriate insurance coverage to protect against potential liabilities. 

Read Our Blog: Premises Liability for Business Owners 

Not Understanding Local Tax Law

Texas has specific tax regulations that vary by industry and municipality. Misunderstanding or neglecting these requirements can result in penalties or audits. Work with a tax professional to navigate local laws and maintain proper records to ensure compliance. 

Overlooking Data Protection Laws

In Texas, legal fees have grown exponentially in recent years, especially regarding data security. Developing a comprehensive data protection plan not only shields your business from liability but also safeguards your customers’ trust. Richards Rodriguez & Skeith can help you implement policies to secure your business’s digital assets. 

A Business Law Firm with a Heart

At Richards Rodriguez & Skeith, we understand that running a business is as much about passion as it is about responsibility. Based in Austin, Texas, we specialize in helping small and mid-sized businesses navigate legal challenges with confidence. 

Your business deserves the right legal foundation to thrive. Contact us today to discuss how we can support your success and safeguard your future. 

Richards Rodriguez & Skeith

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