Reasons Your Business is Being Sued

Reasons Your Business is Being Sued

When growing your small business, you’ll probably take some time to consider the different legal obligations you must uphold. Getting sued by a competitor or an employee can be a scary prospect because lawsuits can mean financial ruin, especially for a small business. Taking the necessary preventative measures when starting your small business will help ensure that you are legally protected should you experience legal problems down the road.

If you find yourself facing a lawsuit from another business, competitor, or employee, you might be wondering how it got to this point. You will want to take every measure necessary by retaining a business lawyer Arlington VA who has experience in handling such matters.

Common Reasons for Small Business Lawsuits

Business owners will want to make sure that their company is protected in the event that they must contend with a legal matter. You may find that no matter the precautions you take, you are still vulnerable to legal recourse. Thankfully, there are measures you may be able to take that mitigate the chance of this happening to you. Here are some common reasons small business owners find themselves experiencing legal trouble:

  • Employees might bring lawsuits forth for a number of reasons that may include claims of discrimination, pay, harassment, etc. It will be important as an employer that you have an employee handbook in place and are compliant with laws surrounding employment.
  • You could be accused of not upholding contracts or agreements in place with customers and vendors. For example, if work was not paid for on time or items were not delivered.
  • You and your business partner have had a falling out.
  • You did not protect your intellectual property, or you unknowingly took an idea from another business.
  • You fail to pay your taxes, or you did not correctly file them in Arlington VA.


For a number of situations, you may be taking missteps without even realizing that you did something wrong. A business lawyer can be particularly helpful in taking measures to prevent you from experiencing legal troubles. If you have found that you must contend with a lawsuit, working with an attorney will be important.

Preventative Measures

When setting up your business, consulting with a business lawyer in Arlington VA will be valuable for mitigating legal trouble down the road. They will be able to look over your business plan and may help build in protections to ensure that your business does not experience legal problems. For a small business, legal issues can be a real nightmare. Here are some ways that you can protect your business:

  • Make sure you have an understanding of the legalities surround small businesses.
  • Make sure that you have protected your intellectual property and that you have checked to make sure that you have not used some else’s idea or business name that has already been registered.
  • Make sure that you have agreements or contracts in place that clearly outline your partnership in the event you are in business with someone.
  • Make sure that you have a clear record keeping process and are paying your taxes in a timely manner. It is highly recommended that you retain an accountant for their assistance through this process.


Forming a small business can be an exciting time. It can be tempting to skip steps that are an important part to ensuring that your business is legally protected. Working with an attorney can be a vital step in setting up a new business.

As a small business owner, the last place you want to find yourself is litigating over a business matter that another person or entity has brought forth. In a number of situations, a small business owner may not have even realized they did something wrong. Consulting with an attorney can be helpful through this process so that you can keep your business intact and thriving.

For more information about hiring a business lawyer Arlington VA entrepreneurs trust, contact May Law, LLP today.
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