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How to Prevent Unintentionally Breaking the Law as a New Small Business

by Marketgit Team

There are so many laws that govern how a small business can be run that range from obvious to fairly obscure. Accidentally discovering that your business has violated a regulation can be distressing and even lead to the closure of your business as well as other penalties. However, there are ways to make sure that you are operating within the confines of the law to protect yourself, your business, and your clients. Here are some of the basics you should know to keep your business from making any legal errors.

What Are the Most Common Ways a Small Business Unintentionally Breaks the Law?

There are, unfortunately, plenty of different ways that a well-intentioned business owner can unwittingly break the law. Many of these are due to misunderstandings or failing to educate themselves about the legal way to process their business finances. There are also important data protection and document destruction policies that must be followed in order to remain above board. Not paying employees according to the laws of your location and failing to provide safe work conditions can also lead to legal trouble.


Any misleading financial information can lead to serious legal trouble, especially when it comes to paying or not paying taxes. To protect yourself from legal action being taken against you, you must accurately report all of your taxes. Research thoroughly about other essential business finance rules you must follow so that you aren’t caught out by your own lack of knowledge. If you don’t fully understand it all, hire someone to help you do so.

Data Protection

Data has become one of the most valuable and sensitive commodities in recent years. Information is bought and sold all over the world, but it can also be stolen. The variety of ways that the misuse or poor handling of data can get a business in trouble is enormous. For example, when someone requests any of the data a business has collected about them, also referred to as a data subject request or DSR, a business must comply or face legal action. Depending on the location, the rules around data security and access are different, so make sure to read up about the laws relevant to you and your business.

Health and Safety

Not complying with health and safety regulations can lead to serious legal consequences, even if no harm has been caused. All your employees should be able to work in safe environments where both their physical and mental health are a priority. This includes using regulated equipment, ensuring that employees have the appropriate certification to perform their duties and that they are safe from harassment.

No one wants to waste hours of their life in court or worse in prison. Business owners are at risk of unintentionally breaking the law in many different ways. If you run a business and want to keep yourself clear, make sure to stay informed of general business laws in your area, regulations within your industry, and proper health and safety.

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