Compliance Basics for Your Small Business – Part 2
Small business owners usually get caught up in how to make their businesses successful and profitable, and most times, are least concerned with the importance of compliance and what it means for their businesses. Compliance takes precedence for small business owners when an auditor shows up from a government agency or when a letter arrives in the mail stating how much in fines are owed because of a violation. With the ups and downs of running a business, small business owners are just not aware of the compliance implications in the various areas of their business. Here are some basic areas of business that should be legally protected:
Contracts. For small business owners it is imperative that all the company’s important agreements are in writing and most importantly, that provisions are made limiting the company’s liability. These documents should be reviewed periodically to ensure that they meet all requirements as the business is growing or changing due to various laws and regulations. Good legal advice is recommended in preparing these documents to guarantee the protection of your company’s assets.
Intellectual Property. If you are a B2B company, make sure you have fully executed confidentiality and non-disclosure agreements signed by all applicable parties. Missing an important caveat within a document could be costly to your bottom line, so it is extremely crucial to exercise due diligence to avoid any regrets down the road.
Non-compete Agreement. Depending on your business, you may need to have your employees sign a non-compete agreement. This agreement protects your business after an employee is terminated, and should have a designated time period usually from six to twelve months stated in the document.
It is easy to overlook these small basic compliance items. In your day-to-day routine, the upkeep of these documents can be overlooked.
This week’s blog was written by Porasah White. Porasah is the Compliance and Billing Director with C2G Resourcing, a subsidiary of Consultants 2 Go, LLC.