Important Suggestions For Avoiding Business Disputes in Arizona
Arizona small business owners know it can be very rewarding to own and operate their own businesses. While the day-to-day operations and long-term planning can seem overwhelming at times, the financial rewards and entrepreneurial pride often far-outweigh those concerns.
Unfortunately, it is not always smooth sailing and small businesses are forced to deal with legal disputes at times. While some of these disputes may be unavoidable, the following are some suggestions that may help you and your Arizona business avoid potential lawsuits.
Common business mistakes
- Failing to establish a formal entity: Establishing a formal entity is essential for all sizes and types of Arizona businesses. Formation of a corporation, partnership or other type of legal entity will help you to protect your business and personal assets in the event of a lawsuit.
- Failing to write down all agreements: In these litigious times, do not rely on oral statements or handshakes when creating agreements with partners, vendors, customers or business associates. In the event of a dispute, you need a written contract to back up your position or at least a well-drafted and well-conceived memorandum of understanding.
- Failing to formalize employee agreements: It is essential to formalize all agreements made with your employees. Failure to create and enforce employment agreements can quickly embroil your business in costly litigation. Protect your business and business intellectual property including trade secrets with confidentiality, non-solicitation and non-competition agreements with your employees.
- Misunderstanding contracts: Contract disputes are all too common in the business world and can come from a wide variety of sources such as customers, suppliers and vendors, co-owners and your own workers. It is important for business owners to carefully review contracts and understand all aspects and possible ramifications of the contracts before they sign on the dotted line.
- Failing to protect intellectual property: Most businesses today rely on the internet and computer-based programs, systems and files in order to operate successfully. It is essential to protect and enforce your intellectual property rights with such means as copyright, registration and licensing laws.
- Ignoring legal requirements: Paying taxes and obtaining all necessary licenses and permits are essential for maintaining good standing in Arizona. Ignorance of local, state and federal laws is no excuse for noncompliance with rules and regulations applicable to your type of entity and industry.
- Not seeking professional advice: Enlightened and experienced counsel is necessary for every Arizona business. From the time of business formation through financial struggles and growth and, eventually, ending with an exit from your company, seek professional advice to avoid potential missteps.
At every step of the way, a knowledgeable and experienced Arizona lawyer can provide valuable assistance to you and your business. This will help your business avoid unwanted and troublesome disputes. If such disputes do arise, it will help you to resolve them in an expedient and cost-effective manner. An attorney knowledgeable about avoiding and resolving business and commercial disputes can be a great contributor to your business success.