ABA Family Legal Guide

Forming and Operating a Small Business

Business Problems

Operational Problems

What legal problems does a business typically encounter after it is organized and operational?

There are four general types of legal issues that a new business might encounter:

1. Major transactions such as a bank loan, or a purchase or lease of equipment or real estate that involves the drafting or review of various legal documents and the preparation of minutes authorizing the transaction

2. Changes in statutes and regulations that necessitate changes in the company's contractual documents and internal manuals

3. Ongoing regulatory compliance--for example, timely filing of corporate annual reports and assumed name refilings

4. The necessity of periodically reviewing and updating the company's legal structure