Part of running a successful business is knowing how to protect your legal interests. Since this is often new and unfamiliar terrain, hiring a lawyer will help you make sound decisions that help your venture thrive. Below, the attorneys at Penoyar Law Offices in South Bend, WA, discuss three common legal mistakes business owners make, so you can identify and avoid them before they affect your company.

3 Mistakes Business Owners Often Make

1. Not Forming the Right Business Designation

There are a variety of legal designations under which you can file a business. A limited liability company, or LLC, does exactly what the name implies: It limits your personal liability if the company experiences financial hardship. A corporation designation can limit liability as well, but it has different tax implications. The right designation affects all aspects of the company, from how well you are protected to how much you pay in taxes; choosing the wrong one, or none at all, can be extremely detrimental to your business's prospects.

2. Not Using Appropriate Contracts

Contracts are essential to any operation because they define the signatories’ roles, rights, and responsibilities. Some owners utilize template contracts that might be relevant in broad terms, but do not cover specific details about your company. Working with a lawyer ensures your business agreements are tailored to your needs and provide adequate protection.

3. Not Hiring a Lawyer

While large corporations often have legal departments, small and midsize businesses need to retain a lawyer for a variety of reasons. They will you comply with all applicable tax and business laws and provide knowledgeable representation in negotiations and conflict resolution sessions. Trying to handle these tasks yourself takes you away from daily operations and can result in costly errors.

If you’re ready to hire a business lawyer, then trust the team at Penoyar Law Offices. With over a century of combined experience, they proudly serve clients throughout Pacific County. Call (360) 875-5321 to arrange an initial consultation, and visit the law office online to learn more about their services. Follow the firm on Facebook or Twitter for additional tips.