Small firms often unaware of potential legal problems

Gannett News Service

Small business concerns like marketing, sales, and staffing can easily take priority over legal issues, particularly ones that don't seem to be of immediate concern, but that's the wrong attitude, according to Lawoffice.com, an Internet legal portal.

It said smart planning also includes preventing problems and making sure the business is protected against potential trouble.

Lawoffice.com warned about the following potential legal hot spots:

• Corporate Governance. After a new business is incorporated, companies sometimes neglect the on-going legal requirements to maintain their corporation status.

Annual shareholder, director and partner meetings need to be held, and recording of minutes and election of officers must conform with state requirements.

• Intellectual Property. Many intangible assets of a business should be legally protected. A company's name and logo, as well as brand names and distinctive goods and services may be entitled to copyright protection.

• Employment Agreements. The inside knowledge of employees may be some of a company's most important assets. Non-disclosure and non-competitive agreements can protect trade secrets and other important information when employees leave.