Small Business, Big Responsibilities
Running a business is more than offering a great product or service. Every day, owners make decisions that carry legal weight—whether they realize it or not. From contracts and hiring to leases and liability, one mistake can cost time, money, and reputation.
That’s why legal protection isn’t just for large corporations. It’s essential for small businesses too—especially in Rhode Island and Massachusetts, where regulations can vary significantly depending on your industry and location.
Top Legal Risks for Small Businesses
1. Poorly Written Contracts
Verbal agreements and handshake deals are risky. Without properly written contracts, you could face:- Payment disputes
- Liability confusion
- Termination issues
- Intellectual property loss
2. Improper Business Formation
The legal structure you choose—LLC, S-Corp, partnership—affects your taxes, liability, and ownership. If not properly formed and documented, your personal assets could be at risk in a lawsuit or debt claim. McCormick Law helps business owners in Rhode Island and Massachusetts choose and set up the right structure from day one.3. Employee Misclassification
Hiring employees or independent contractors? Misclassifying them can trigger serious consequences with the IRS, Department of Labor, and state agencies. Make sure your employment practices comply with both federal and state regulations to avoid penalties, back pay claims, and audits.4. Lack of Legal Compliance
Depending on your industry, you may need licenses, insurance coverage, or zoning approvals. Failing to comply with local or state laws can lead to:-
- Fines and shutdowns
- Revoked licenses
- Liability for customer injuries or property damage
5. Disputes Between Partners or Owners
Partnerships and small corporations often struggle with unclear roles, money disagreements, or succession plans. Without a clear operating agreement, even a close partnership can fall apart—and lead to costly litigation.Proactive Legal Steps Every Business Should Take
Have All Contracts in Writing
Include key terms, payment structures, timelines, and dispute resolution procedures.
Register and Renew Business Licenses
Stay current with your Secretary of State, town, or state agencies.
Review Your Leases and Vendor Agreements
Many business owners sign long-term contracts without fully understanding the fine print.
Maintain Insurance and Liability Coverage
Consider general liability, professional liability, and cyber insurance, depending on your risk level.
Create an Employee Handbook and Policies
This helps prevent discrimination claims, wage disputes, and regulatory issues.
Plan for the Unexpected
Establish a succession plan, buy-sell agreement, or even a trust to ensure your business can survive a death or sudden exit.
Why Work With McCormick Law?
We’ve advised small businesses across Rhode Island and Massachusetts for over 30 years—helping them avoid costly legal mistakes and navigate complex state regulations.
Whether you’re just starting or expanding your business, we provide:
- Business formation and registration
- Contract drafting and review
- Employment law guidance
- Dispute resolution and litigation support
- Industry-specific legal strategies
Most importantly, we take time to understand your business—so we can help protect it long-term.
If an agreement can’t be reached, the court will decide for you. Either way, having experienced legal counsel is essential.
Protect Your Business Before There’s a Problem
Legal support isn’t just for emergencies. It’s how smart businesses stay ahead of them.
If you’re unsure whether your current contracts, structure, or policies are enough, let’s talk. A simple review could save your business thousands in future risk.
Contact McCormick Law Offices today for a small business legal consultation.
Legal Disclaimer
The information provided on this website, including all blog posts, resources, and service descriptions, is for general informational purposes only and should not be construed as legal advice. While McCormick Law Offices strives to keep content accurate and up to date, the law is constantly evolving, and the information presented may not reflect the most recent legal developments or apply to your particular circumstances.
No attorney-client relationship is established by viewing this website, filling out a contact form, or engaging with our content. An attorney-client relationship with McCormick Law Offices is only formed through a signed written agreement.
You should not act or rely on any information on this site without first consulting a qualified attorney regarding your specific legal matter. Any links to third-party websites are provided for convenience only and do not imply endorsement or responsibility for their content.
McCormick Law Offices serves clients primarily in Rhode Island and Massachusetts. Legal services are provided in accordance with the applicable laws and ethical rules of these jurisdictions.
If you need legal advice or representation, please contact our office directly to schedule a confidential consultation.
