·  Legal News, Analysis, & Commentary


Legal Issues for Small and Medium Businesses

— May 11, 2021

Law firms regularly review new business laws. They can help you navigate legal issues and save you time and money in the long run.

Small and medium business issues are relevant at all times. Every businessman faces certain problems and difficulties in the course of doing business. Without a legal education, it will not only be difficult for him to solve all these issues on his own but there is also a risk of losing the company.

In such cases, the heads of firms, as a rule, resort to the help of professional lawyers: they conclude an agreement for the provision of legal advice with an individual entrepreneur or a law firm. Large companies have an employee with legal education and work experience in their state.

Let’s take a quick look at the main challenges that businessmen can face.

Obtaining patents for the distribution of goods

The most serious problem today is patent issues. Its registration is necessary to present a new product on the domestic market, therefore, visiting various government agencies to obtain a patent is a must. However, this process takes up a lot of free time, which means that the production line is suspended.

A great way out is to turn to the helpful services of a large law firm. It will be possible to reduce the time, and, at times, bypass some provisions of the legislative framework with their help. Of course, some entrepreneurs completely bypass the stage of obtaining a patent and the necessary documents for this and start distributing their products. However, such activities will sooner or later lead to penalties or even the closure of the entire enterprise after the very first inspection.

Franchising from a legal point of view

To create their own business, some entrepreneurs use franchising. As you know, this is the acquisition of a ready-made business with the transfer to the buyer of the right to use the trademark and brand of the franchiser company. However, it is difficult to call this business “ready” in the literal sense. Despite the help of the franchisor, the buyer of such a business will have to solve some important questions on their own. Among such questions:

  • registration of business activities
  • registration of the lease of the premises
  • registration of employees

In addition, questions about the franchise will arise throughout the entire activity – there is no ideal business. In the articles in this section, you can find useful information on solving the listed here and many other important issues of franchising.

Business registration

Business registration is the first step to starting your own business. Depending on the type of upcoming activity and its volumes, you can arrange a business as an individual entrepreneur or as an LLC.

What is the difference between them and what method of registration of activities is better to choose? You can also find all the necessary information in the corresponding subsection of this section. Here I would like to note that the main thing on which the choice in favor of LLC or individual entrepreneur will depend is, of course, taxation. Therefore, it is better to resolve legal issues on opening an individual entrepreneur or LLC only after consultation with a competent specialist not only in the legal field but also in the field of business taxation.

Employee benefits

Business legal issues also relate to interaction with the Pension Fund. In business, it is important not only to select competent and professional employees, which is the key to the success of any enterprise but also to arrange them correctly, in accordance with the requirements of the current legislation. And in the future, timely provide relevant information to government authorities: tax authorities, the Pension Fund. The presence and professional skills of the personnel department at the enterprise play an important role here.

Graphic depicting lawyer holding smartphone, various legal symbols in the air before the the lawyer. Graphic by Mohamed Hassan, via
Graphic depicting lawyer holding smartphone, various legal symbols in the air before the the lawyer. Graphic by Mohamed Hassan, via

Services of law firms

Nowadays, questions about an individual entrepreneur and doing business in the form of an LLC are rarely solved without outside help. Therefore, the manager has to make a difficult choice between hiring additional employees and contacting a large law firm. Most often, individual entrepreneurs stop at the latter option, thereby reducing cash costs. Organizations, on the other hand, tend to have their own lawyer who can be trusted.

After opening your own enterprise or software company, numerous questions immediately arise: on investments, taxation, patents, etc. But there is no need to rush to hire an experienced lawyer. His salary is high, so it will be costly to afford his services in the early stages of development. 

In addition, remote cooperation with a lawyer also has its advantages:

  • rich experience of specialists;
  • small cash costs;
  • constant accounting in all selected areas.

Law firms regularly review new business laws. If the company is large and has many years of experience – most likely, the question that you have had, it has already had to solve and it will not be difficult for it to help you.

Join the conversation!