Quit Getting Screwed Podcast

Episode 23: Surviving Legal Land Mines

Episode Link: https://the-quit-getting-screwed-podcast.castos.com/episodes/episode-23-surviving-legal-land-mines

Sometimes your construction company’s Legal Land Mine is something you would never be able to predict! Legal land mines are the things that you may not even know about, but there can be grave consequences if you fail to prepare for them. Luckily, in this week’s episode, Episode 23, Karalynn gives you some insight into those unexpected pitfalls and lets you know how to protect against them on the front end. Karalynn has created a checklist to protect contractors from the most common issues she sees. We will tackle a few of those here.  

1.) No matter what state you work in, you MUST be incorporated. What does that mean? It means you must register with the state and file paperwork with each state you operate within.  

Why is this important? Being incorporated protects you individually and your individual assets from liability. Whether it is the liability for materials, loans, or anything else your company owes funds for, your personal assets will not be up for grabs when your company is incorporated. 

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2.) Another significant land mine that occurs is employee misclassification. It is essential to discuss with a construction attorney how you should be classifying the folks who are working for you. Payment rules are different for subcontractors and employees, and the ways you conduct business with each have different requirements. If you are using subcontractors, you must be sure you have an actual Subcontractor Agreement between you and the sub you are hiring out. If you have employees, you must create and enforce employee handbooks in your workplace and establish clear and consistent processes among your staff.

These items are just a few on Karalynn’s list of most common Legal land mines that are quite easy to prepare for on the front end. At the end of the day, the power lies in your hands for much of the conflict mitigation it takes to keep these problems from arising. Don’t let the industry’s idiosyncrasies leave you stuck between a rock and a hard place; prepare your business for every Legal land mine by tuning in! Click the subscribe button to be sure you are notified for all future episodes of The Quit Getting Screwed podcast. For more from Karalynn, follow The Cromeens Law Firm on Facebook, LinkedIn, or Instagram. You can also purchase the book that started it all, Quit Getting Screwed, on Amazon.

This article is intended as a general educational overview of the subject matter and is not intended to be a comprehensive survey of recent jurisprudence, nor a substitute for legal advice for a specific legal matter. If you have a legal issue, please consult an attorney.