The Most Common Business Law Misconceptions

by Josh Biggs in Business on 7th March 2020

When it comes to business lawyers like Jacobson Law Firm , there are countless misconceptions that specialists need to deal with every single day. Unfortunately, most people do not properly understand what business law is all about. They trust people that do not have the necessary knowledge to offer business or legal advice. This can so easily lead to the unwanted situation in which legal problems that could have easily been avoided appear and hurt the business.

Whenever talking about law, it is important to be aware of what is true and what is false. This is why you should never believe the following very common business law misconceptions that appear way more often than they should.

Misunderstanding Business Owner Accountability

A very common misunderstanding in business law appears in regards to being a business owner. There are many that think they do not have to deal with the repercussions of illegal activities because the business entity is the one that is at fault. In reality, regardless of how the business is structured, at the end of the day, it is the business owner that is blamed with mismanagement.

In any business, those that are decision-makers are held accountable when illegal activities happen. This includes the situation in which they are not aware that the law was broken. A business lawyer is always needed to make sure that every single aspect of business operation respects the law. Do not believe that you will not be accountable if something bad happens inside the company.

Not Knowing The Law Discards Culpability

Another misconception associated with business culpability is that when the person breaking the law did not know that this was happening, no legal problems can appear. In fact, most illegal activities continue due to a lack of knowledge but this does not mean that you do not have to answer in front of the authorities simply because you did not know the law.

The best example appears in local regulations. Laws that exist in one state can be different than those in another state. If you know the laws in one state, you respect them and you break the law in another state where you recently opened a business office, you still broke the law.

Any Person Can Open A Business

According to the law, any individual can establish a business by handling all the necessary paperwork. However, this does not mean that the choices made during this vital part of business ownership will be the correct ones.

There are various different business models that exist. If you establish a company according to different parameters than what you will actually do, legal problems will appear. Sole proprietorship stands out as the only simple option that can easily be understood. For anything that is more advanced, it is best that a business lawyer is hired to establish the business entity.

Change Is Impossible

The last common misconception that should not be believed is that when a business does something illegally for a long time it is very difficult to properly reorganize for proper law compliance. This is not at all true. Every single business lawyer will tell you that changing operations is not at all challenging. What is important is to know exactly what steps need to be taken.

The best thing that you can do when you want to make a legal change in your business is to hire a business attorney. You need to take the advice that is offered by the professional so that you can be in full legal compliance. If the attorney is experienced, there is no reason why business operations cannot become legal.

Categories: Business