Tuesday, April 1, 2014, PM | 1 Comment
Running a business is hard enough without having to deal with legal issues. People like Oh-Hyun Kwon, CEO of Samsung and Frank Vandersloot, CEO of Melaleuca have to deal with legal issues on a regular basis. When you add the Feds to the mix, things can get ugly very quickly.
When the government gets involved, your business is on the line. Not only could news of your brushes with the law get publicized and put off customers, the business could get shut down permanently, and you could go to prison for a very long time.
If you want to stay on the right side of the law, here’s what you should do.
Avoid False Advertising
When you’re trying to sell a product or service, it’s obvious that you’d hype it up so that people become interested. Boasting about its benefits and comparing with the competition is typical, but never go so far as to put blatant lies in your ads.
Lies about pricing, available supplies, warranties, product capabilities, and more can win you a hefty fine, jail time, or both. False advertising is a serious crime that can destroy even the most established businesses.
Both state and federal laws regulate advertising, and it’s the Federal Trade Commission that will pin you for making false claims.
Pay Your Taxes
Everybody knows that the IRS is cracking down on tax evasion. If you want your business to avoid any unnecessary complications, take care to report your company’s earnings accurately.
Unfortunately, too many businesses out there declare lower earnings to the IRS while pocketing the amount that was left out.
This greedy and illegal way of making money gets many of them busted and put out of business. If you have any pride in your business and respect for your customers, submit accurate records of your income, and pay your taxes.
Don’t Violate the Terms of Contracts
Just about every business deals with contracts of some sort. Contracts are agreements made between a business and another organization or individual.
When both parties agree to specified terms and sign on the dotted line, the words in that contract are final and binding. Never attempt to go back on your word to cheat the other party. You could end up getting slapped with a huge lawsuit.
However, your company could also be sued unjustly when the terms of the contract were actually not violated. It’s also possible for your company to become the victim of a contract violation.
If either are the case, hire an attorney immediately to help you get things sorted out. You should be able to take legal action against the offending party and potentially win significant financial compensation in court.
Although you might run your business, the government really runs everything. Educate yourself about the law, and try your best not to break any. Government troubles almost always spell disaster for businesses.Facebook.com/doable.finance