If you are growing a new business, part of what drives you is the desire to succeed. You may also be driven by the autonomy of being your own boss and relying on your intelligence and business savvy in order to secure your future. While these are genuine ambitions, there are a number of legal issues that could be missed. These blind spots could cause real problems as the business grows and could end up crippling the business altogether.
Some business owners are concerned enough with them that they may keep them up at night. This post will identify a few of these potential issues (and what to do about them) so that you can rest easy.
Are my personal assets at risk? – Most small business owners incorporate their businesses to separate their business persona (and income) from their personal assets. So while the separation of entities generally protects personal assets, a business owner could be held personally liable when he or she promises to be held personally liable. So be wary of these guarantees when taking out loans and credit applications.
Should I worry about the Affordable Care Act? – If you have fewer than 50 employees, chances are that you will not have to worry about the provisions of the ACA (or Obamacare) that requires health care plans for full time employees.
Should I worry about payroll taxes? – In a word: absolutely. If you have employees, it is your responsibility as an employer to collect (and report) Social Security and Medicare taxes. Failing to do so could lead to stiff financial penalties.