innovate arkansas

But there is a possibility that the awkwardness of letting someone go won't stop at the office or even with chance encounters at the grocery store. It could proceed all the way to court.

That's why it's critical for small business owners to have access to a trusted legal adviser who knows the ins and outs of labor and employment law, said Beth Kearney, an attorney in Fayetteville with Friday Eldredge & Clark.

A discrimination or unlawful dismissal suit is likely to be the first time a small business owner has to go to court. Having a go-to legal adviser can help business owners avoid a court visit.

Kearney handles more discrimination suits than any other type. She also works on many cases involving wrongful termination, as well as cases of employee theft of trade secrets, claims for unemployment compensation and situations with wage and hour issues.

Creating detailed handbooks that address these issues for workers is another way business owners can avoid workplace-related litigation.

"My biggest advice to any business owner is to have clear and consistent policies with regard to their employees," Kearney said.

Those policies must also be consistently applied.

Lawyers Offer Advice On Taxes, Securities

Scenes of courtroom drama aren't the only time small business owners will need legal help.

"One issue that faces small business owners right off the bat is trying to get access to capital or funds to start up or grow their business," said Greg Scharlau, an attorney with Conner & Winters LLP in Fayetteville.

This will very often involve advice on lending, such as ways to avoid putting up personal collateral for business-related bank loans.

Regardless of whether entrepreneurs raise funds from friends and family or outside investors, once they begin to issue stocks in the business, state and federal securities laws come into play, he said.

Certain exemptions are available concerning the registration requirements of securities laws, and an attorney is usually needed to determine if those exemptions apply.

Other issues where small business owners might benefit from legal counsel involve leases and contracts, taxes and deciding on the best type of business entity to form.

Attorneys Aid Lien Process

Not all business owners have an attorney on retainer.

Some have a friend or acquaintance who is a lawyer that they can call upon should the need arise for legal counsel.

Many in the business of construction or carpentry might have had to consult their attorneys more often in the last 18 months, as evidenced by the number of liens filed against developers in Benton and Washington counties during that time.

Improper filing of a lien can cause it to be dismissed, as can waiting too long to file. Having an attorney available to file liens can help avoid any hitches.

"That's why we file suit and get it to a head real quick, said Jim Justus, owner of Justus Cabinets & Supply Fayetteville. "That way it gets things to a conclusion."