What are the most common legal mistakes new Idaho business owners make?
The Small Business Administration (SBA) reports that there are nearly 200,000 small businesses in our state. Many thousands of new companies are formed each year. Are you a new business owner? There are some very common mistakes that you need to avoid. Too many potentially great companies fail within the first few years. Here, our Boise business lawyer highlights four of the most common legal mistakes that new business owners make in Idaho.
Mistake #1: Picking the Wrong Business Structure
One of the most common mistakes is one of the first decisions that a new business owner makes: Selecting the right legal form for the company. All businesses in Idaho need the right foundation in order to thrive. Many first-time owners rush into business as a sole proprietor because it seems simple and inexpensive. The problem is that this choice leaves personal assets exposed to business debts and lawsuits. On the other hand, forming an LLC or corporation without understanding the ongoing compliance obligations can also cause issues. There is no one right answer. A Boise, ID business formation attorney can help.
Mistake #2: Not Using Written Contracts
Business is done on paper in the modern world. Handshake deals may feel straightforward, but they rarely hold up when something goes wrong. Whether it is an agreement with a business partner, a vendor, or even a family member, failing to put terms in writing is a recipe for disputes. A written contract clarifies expectations, allocates risk, and provides remedies if one party does not follow through. A Boise business lawyer can help you negotiate, draft, and review contracts.
Mistake #3: Not Considering State and Local Licensing Requirements
Not every business can simply open its doors after filing formation documents with the Idaho Secretary of State. Depending on your industry, you may need state licenses, city permits, or regulatory approvals. Restaurants, construction companies, child care facilities, and professional service providers are just a few examples. A common mistake is assuming that registration with the state is the only step. Falling behind on permits or inspections can delay operations or even lead to shutdown orders. A top-tier Boise business lawyer will provide proactive support.
Mistake #4: Failing to Plan for Disputes
Disputes can happen even if you do everything in your power to try to prevent them. No one wants to think about conflict when starting a business, but ignoring the possibility is risky. Partnerships can sour, customers can refuse to pay, and suppliers can break promises. Many owners are caught off guard when they realize they never set up a process for handling disputes. Having clear agreements, documented policies, and a relationship with a trusted lawyer makes it easier to resolve issues quickly (and often without litigation).
Contact Our Idaho Business Law Attorney Today
At Johnson May, our Boise business lawyer is always ready to go the extra mile to help clients solve problems. If you have any questions about forming, owning, or operating a new business, please do not hesitate to call us now or contact us online to arrange your completely confidential consultation. From our offices in Boise and Twin Falls, we serve communities across the entire region.
