Entrepreneurs Often Wind Up With Legal Trouble. Why?
Entrepreneurs would like to spend the lion’s share of their time working on their businesses, creating value, and achieving their long-term financial goals. To that end, they’d prefer to avoid getting involved with the law, wherever possible. Unfortunately, that’s not always how it works out.
Even with their best efforts, some entrepreneurs wind up falling foul of some statute, and the state takes action against them.
Business leaders tend to be prominent people in the community at the center of multiple networks. Their high-profile lives mean that their actions come under regular scrutiny from colleagues, customers, and state officials. If they break the law, somebody usually finds out. And when that happens, regulators and prosecutors feel they must press charges.
Most of the time, entrepreneurs aren’t deliberately trying to break the law.
Some of the world’s top entrepreneurs bludgeon through the legal noise and carry on, like Elon Musk, but he’s an exception. The average leader trying to do right for their firm isn’t willing to take the risk and expose themselves to the cost of litigation.
Rules and regulations are supposed to keep everyone safe and help create a more prosperous and peaceful world. But when applied to entrepreneurs, they sometimes stifle creativity, which may harm society and holding people back.
Let’s take a look at some of the most frequent reasons for legal trouble among entrepreneurs:
Driving recklessly
Driving badly is one of the main reasons entrepreneurs seek the help of a criminal defense lawyer. Because they’re always rushing from one place to another, they often wind up with roadside citations of one kind or another. Speeding and DUIs are serious offenses that can seriously derail their capacity to run their enterprises.
Failing to comply with labor laws
The state doesn’t take kindly to companies that fail to comply with labor laws. And neither do colleagues themselves. Entrepreneurs can face serious litigation costs when they don’t follow the requirements set out in statute.
Accounting issues
Entrepreneurs are also under siege from tax authorities. Failure to complete returns accurately or submit them on time can result in hefty fines and even criminal action in some cases. Investigations are lengthy and stressful, and you never really know what they are going to throw up.
Entrepreneurs have a final issue with which to contend that most people don’t: their view of the world. Business leaders in the voluntary sector are used to negotiation to get what they want. But that’s not how the state operates at all. It just creates laws and then uses force to back them up. Entrepreneurs need to comply with all laws and regulations, and consult with an attorney before making important decisions.
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Ken Boyd
Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies
(email) ken@stltest.net
(website and blog) https://www.accountingaccidentally.com/