A common misconception is that some people think they would be protected no matter what if they operated a business. They take the example of Enron, where the person stole millions and millions of dollars but nothing happened to him, so they expect the same would happen to them also. They think it would not actually matter what happened because they think they would be fine even if the business crashed.
Unfortunately, this is not always the case because the laws have changed a great deal to make the owners and the CEOs of companies responsible for any errors in judgment or mistakes their companies make, so it has become very important to have counsel to make sure they were doing everything right.
One of the companies I represented in the past forgot to clear one of their products with the FDA so they ended up getting sued by the FDA for that. There is nothing worse than getting in trouble with the government because they have unlimited resources and time and they would be happy to charge the person even if they had made an honest mistake because they did not know they were doing something wrong.
Can Someone Set Up A Business Even If They Were Not Actually Qualified To Do So?
Yes, plenty of companies could set up a company very cheaply for their clients, however the problem would be that they would use general forms which had not been customized for the particular client’s specific business. There is no catch-all and no boilerplate that could be used for every business.
It would have to be uniquely tailored to that company, because if it was not uniquely tailored then it might cause problems in the future, which is why the person should always want to have their company set up properly. It would always be worth doing it right the first time rather than having to fix problems later on and then deal with the government or deal with a lawsuit later.
Can People Break The Law And Not Even Know It?
Yes, and unfortunately, ignorance is no excuse, so someone who was going into business ought to have their eyes wide open and they should know exactly what they were getting into.
Is It Difficult For Existing Businesses To Change The Way They Do Things Legally?
This would really depend on the culture of the business and the owner. We can usually get things changed and implemented very quickly if the owner or whoever was in-charge like a manager or the upper level executive was onboard, especially if there were any type of possible criminal violations of the law.
We would want to fix any type of potential violations like that as quickly as possible, and that would be done by implementing change. We would need to get the whole company onboard and do it as quickly as possible. It would definitely be doable, but we would just need to have the upper executives onboard.
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