10 Common Business Mistakes that MA Business Owners May Make—And How to Avoid Them
Running a business is no small feat. From managing day-to-day operations to overseeing growth and compliance, business owners face a host of responsibilities—and with them, potential legal pitfalls. At Long Hagan Huff-Harris, our Boston business attorneys regularly counsel entrepreneurs and small business owners across Massachusetts on how to proactively safeguard their operations.
Even with the best intentions, many business owners make common legal mistakes that lead to costly disputes, government penalties, or even litigation. The good news? These risks can be minimized with strategic legal planning and sound advice.
1. Form a Proper Business Entity
Choosing the right legal structure—LLC, corporation, partnership, or sole proprietorship—is foundational to protecting personal assets and limiting liability. Equally important is ensuring all formalities (such as filing articles of organization and maintaining operating agreements) are met.
Our Boston business formation lawyers can guide you through entity selection and compliance from day one.
2. Obtain Adequate Insurance
Business insurance is a must. Whether it’s general liability, professional liability, or cyber insurance, the right policy can protect against lawsuits, accidents, and unexpected disruptions.
Need help determining what coverage is right for your business? Our Massachusetts small business attorneys can connect you with trusted insurance professionals and ensure you're legally protected.
3. Put It in Writing
Handshake deals may feel convenient, but they often lead to misunderstandings and legal disputes. Every agreement—whether with vendors, partners, or clients—should be documented in a written contract and reviewed by a lawyer.
At Long Hagan Huff-Harris, we draft and review business contracts that stand up to scrutiny and clearly define responsibilities.
4. Protect Your Intellectual Property
Intellectual property (IP) is one of your most valuable business assets. From trademarks to copyrights and trade secrets, IP protections help maintain your competitive edge.
Our Boston IP attorneys can help you register and protect your business’s name, logo, and proprietary content before someone else claims it.
5. Build a Trustworthy Team
Establishing trust with your employees starts with fair policies and clear communication. A respectful workplace culture reduces the risk of labor disputes, wrongful termination claims, and harassment allegations.
We assist businesses in Massachusetts with crafting employee handbooks, contracts, and workplace policies that foster compliance and trust.
6. Hire Smart
Thorough hiring practices reduce the risk of internal problems. Conduct background checks, verify references, and ensure compliance with anti-discrimination laws to avoid negligent hiring claims.
Our business lawyers in Boston can advise you on safe hiring protocols and how to legally onboard new team members.
7. Know the Law—Locally and Federally
Massachusetts businesses are subject to a wide array of state and federal laws. From wage and hour rules to data privacy laws, staying compliant is crucial.
We offer regular legal audits to help Boston-area businesses stay informed and avoid violations that could result in fines or lawsuits.
8. Prioritize Bookkeeping and Records
Accurate financial records are not just for tax season—they’re a legal requirement. Incomplete or sloppy bookkeeping can trigger audits, penalties, or even fraud allegations.
We work closely with accountants and financial advisors to ensure your business books are clean, compliant, and litigation-proof.
9. Pay Your Quarterly Taxes
Failing to make timely estimated tax payments can lead to interest, penalties, and even IRS scrutiny. If you're unsure of your tax obligations, don’t wait.
Our business attorneys can refer you to tax professionals or assist in structuring your business in a tax-efficient way.
10. Under-Promise and Over-Deliver
Misleading advertising, unmet expectations, or broken service guarantees can lead to customer complaints—or worse, legal action. Manage client expectations conservatively and always aim to exceed them.
A solid reputation—and fewer legal headaches—begin with clear, honest communication and contract terms.
Legal Support That Grows With Your Business
At Long Hagan Huff-Harris, we believe that legal protection should be proactive, not reactive. Whether you're just starting out or managing a growing enterprise, our Boston business law team is here to help you build a solid foundation, avoid legal traps, and focus on growth.
Schedule a consultation with Long Hagan Huff-Harris today to ensure every corner of your business is legally secure.