CHASE LAW NAVIGATOR

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OPERATIONS LEGAL ISSUES

Administration of a business is complicated and any number of issues can arise at any time. Knowing the risks and how to prepare for them is a good way to protect your business.

BUSINESS LICENSES

How can I find out what kind of business licences are required to conduct business?


A good place to start is at your local courthouse where you can obtain a license. However, the SBA has a small business resource tool which can be used to find resources on your area. Learn more here: https://www.entrepreneur.com/article/38882




What do I do if I have been operating without a business license?


A worse case scenario, a business caught without a license may be forced to stop their operations. This can even come with a probationary period that you must wait to expire before you may reopen. Some professions may even mean you will face criminal charges. Either way, to avoid fines or worse penalties, you should cease operations until you have a business license and probably consulted with an attorney or legal advisor in you field. Learn more here: https://smallbusiness.chron.com/can-happen-open-business-business-license-2461.html





CONFLICTS OF INTEREST

How important is it that I maintain copies of receipts for my expenses?


You need this information for your own protection and tax returns. The more documentation you have, the better. Learn more here: https://www.mdtaxattorney.com/resources/why-is-it-important-to-keep-receipts/




How meticulously should I keep records of my expenditures?


Identify the source of receipts, keep track of deductible expenses, prepare tax returns. Specifically, some of the many items you should keep are invoices, receipts, payroll, business transactions, journals, ledgers, previous tax returns, travel, entertainment, transportation, gift expenses, employment taxes, asset, business property, canceled checks or bank statements, credit card statements of any card used in association with the company, and any forms such as 1099, K1, W2, or ect. Keeping these items for at least 7 years is a good idea. The IRS has specific time needs for each document. Learn more here: https://www.irs.gov/businesses/small-businesses-self-employed/why-should-i-keep-records




What should I do if I lose some of my receipts for items purchased?


Check bank statements, or any other means of gaining a record of the transaction. If the documentation was lost through no fault of your own, such as in a natural disaster, the IRS may show mercy. Make a detailed explanation for any lost documentation. Sometimes a pattern of spending is evidence enough. If you can find the name of the item, when you bought it, and where, you can figure out the cost this way. Use modern technology to your advantage. Learn more here: https://www.hrblock.com/tax-center/irs/audits-and-tax-notices/im-being-audited-what-if-i-dont-have-receipts/





LITIGATION/LIABILITY ISSUES

How important is it that I maintain copies of receipts for my expenses?


You need this information for your own protection and tax returns. The more documentation you have, the better. Learn more here: https://www.mdtaxattorney.com/resources/why-is-it-important-to-keep-receipts/




How meticulously should I keep records of my expenditures?


Identify the source of receipts, keep track of deductible expenses, prepare tax returns. Specifically, some of the many items you should keep are invoices, receipts, payroll, business transactions, journals, ledgers, previous tax returns, travel, entertainment, transportation, gift expenses, employment taxes, asset, business property, canceled checks or bank statements, credit card statements of any card used in association with the company, and any forms such as 1099, K1, W2, or ect. Keeping these items for at least 7 years is a good idea. The IRS has specific time needs for each document. Learn more here: https://www.irs.gov/businesses/small-businesses-self-employed/why-should-i-keep-records




What should I do if I lose some of my receipts for items purchased?


Check bank statements, or any other means of gaining a record of the transaction. If the documentation was lost through no fault of your own, such as in a natural disaster, the IRS may show mercy. Make a detailed explanation for any lost documentation. Sometimes a pattern of spending is evidence enough. If you can find the name of the item, when you bought it, and where, you can figure out the cost this way. Use modern technology to your advantage. Learn more here: https://www.hrblock.com/tax-center/irs/audits-and-tax-notices/im-being-audited-what-if-i-dont-have-receipts/





RECORD KEEPING FOR THE PURPOSE OF AUDITING

How important is it that I maintain copies of receipts for my expenses?


You need this information for your own protection and tax returns. The more documentation you have, the better. Learn more here: https://www.mdtaxattorney.com/resources/why-is-it-important-to-keep-receipts/




How meticulously should I keep records of my expenditures?


Identify the source of receipts, keep track of deductible expenses, prepare tax returns. Specifically, some of the many items you should keep are invoices, receipts, payroll, business transactions, journals, ledgers, previous tax returns, travel, entertainment, transportation, gift expenses, employment taxes, asset, business property, canceled checks or bank statements, credit card statements of any card used in association with the company, and any forms such as 1099, K1, W2, or ect. Keeping these items for at least 7 years is a good idea. The IRS has specific time needs for each document. Learn more here: https://www.irs.gov/businesses/small-businesses-self-employed/why-should-i-keep-records




What should I do if I lose some of my receipts for items purchased?


Check bank statements, or any other means of gaining a record of the transaction. If the documentation was lost through no fault of your own, such as in a natural disaster, the IRS may show mercy. Make a detailed explanation for any lost documentation. Sometimes a pattern of spending is evidence enough. If you can find the name of the item, when you bought it, and where, you can figure out the cost this way. Use modern technology to your advantage. Learn more here: https://www.hrblock.com/tax-center/irs/audits-and-tax-notices/im-being-audited-what-if-i-dont-have-receipts/





RISK MANAGEMENT

How can I mitigate bad reviews about my business?


Make sure your product or Services information is accurate. Decide to make the necessary changes for customer experience so they feel heard and respected. Maintain a transparent system of operation let the public know you are being honest with them. Learn more here: https://hbr.org/2020/05/5-principles-for-responding-to-customer-reviews




What is the best way to reduce the risk of my customers getting hurt as a result of my business?


Maintain high quality equipment and tools while also regularly inspecting products and the place of business for potential hazards. Make sure you post proper warning signs physically and on products. Learn more here: https://www.insureon.com/blog/ways-to-prevent-customer-injury-property-damage




How can I best protect my business from unavoidable business risk?


Adequate insurance coverage is important for any field. This along with proper legal advice from an experience attorney or legal advisor is also important so they can advice you specifically on your fields needs. Learn more here: https://www.investopedia.com/articles/personal-finance/072315/top-ways-manage-business-risks.asp





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