As a current (or potential) small business owner in South Dakota, you’ve undoubtedly received plenty of advice - good and bad.
Here are the first two pieces of "bad" legal advice that you should quickly disregard:
1. “Just get the business going and worry about legal issues later.”
One of the worst pieces of advice given to South Dakota small business owners is to delay the "legal issues" until your business achieves a certain income.
Delaying the "paperwork hassle" and "legal fees" may sound like good business strategy. However, failing to incorporate could result in your personal liability for injuries or damages. For instance, if your flower shop delivery driver accidentally hits a motorcyclist, there could be serious legal consequences.
Also, avoiding the "legal issues," such as forming a corporation or limited liability company (LLC), can result in expensive litigation to resolve later disputes about company structure, company ownership, and company profit distribution.
2. "Bypass the attorney and go online."
Generic legal documents are all over the Internet. Unfortunately, these documents are probably inadequate for your business and may leave you exposed to future legal problems. Every business document must be tailored to your specific situation.
Relying on online legal advice is also risky. Unfortunately, you may spend a significant amount of time and money trying to "un-ring the bell" and undo what you've already done based on bad online advice.