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Three Scary Legal Myths For SMBs To Combat

[ 0 ] Oct. 14, 2013 | SBO Editor

Halloween is just around the corner and it is the time of year where scaring is a “scream” and frightening is fun.  However, it’s important to remember there are real terrors at play – not the ones found in haunted houses – but the everyday terrors that can sneak up on small businesses if they don’t pay attention.

In honor of the hair-raising holiday, Rocket Lawyer, the fastest growing online legal service, has collected a selection of scary legal myths for SMBs to combat… if they dare!!

Myth 1: Businesses Will Get Sued for Not Providing Employee Health Coverage

  • Ninety-seven percent of businesses in the U.S. are not required to provide health insurance for their workers. Why? Because these companies have less than 50 employees and Obamacare’s “employer mandate” only applies to businesses with over 50 full-time staff.

Myth 2: I do not need to consult a lawyer when it comes to naming my company.

  • There are 4 million small businesses in the U.S., and the likelihood that one of will have your name could be quite high.  A horror story is waiting happen if you pick a name legally protected by another company. No matter how clever or “different” your company’s or product’s name may be, you should always take preventive measures to ensure they have not been used and then legally protect them.

Myth 3: Small business assets are protected if they incorporate. While this is partially true, there are many situations where this does not apply:

  • Don’t be fooled into thinking that just because you own a business you are not personally responsible for the assets you acquire.  Most likely you will have to cosign and if you default: it’s your personal pocketbook that will feel the pinch.
  • Mixing Business with Pleasure: A Dangerous Cocktail:  Using company funds for pleasure purposes can expose you to the dark side of the IRS.  And the criminal fraud is the ONLY IRS branch open during the government shutdown.
  • Death & Taxes:  Failing to pay income taxes and employee Social Security and Medicare taxes draw the attention of the IRS and, rest assured, the tax man will cometh.
  • Visit rocketlawyer.com for more info.

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Category: Features