- They do not realize that by incorporating their business they eliminate personal liability exposure in the event of a lawsuit and gain tremendous tax advantages.
- They are operating their business without properly drafted written agreements containing safeguards to maximize their protection in the event of a dispute.
- They remain unaware of the myriad of governmental regulations they are responsible for complying with and the consequences for failure to do so.
- They may have misclassified workers as independent contractors instead of employees which can result in exorbitant penalties and interest.
- No efforts have been made to prevent the theft or misappropriation of their company’s intellectual property (ideas, trademarks, trade secrets, copyrights, etc.)
- They are unaware of the vast number of employment laws they immediately become subject to upon hiring even one part-time employee.
- They have no contractual arrangements in force (e.g., mediation and arbitration) to avoid drawn out litigation with its costly attorneys fees and potential for large jury verdicts.
- No provisions are in place to address situations where a partner wants to leaves the business or be bought out.
- They lack a cost effective plan to collect their stale accounts receivables causing them to lose their hard-earned money.
- They are unaware of the hidden pitfalls included in their office space leases that could, if they arise, substantially increase their costs or lead them into bankruptcy.