1. Why do entrepreneurs get in trouble with the law?
Entrepreneurs get in trouble with the law for several reasons. First is the inability to follow
cooperate laws. When operating an organization, regardless of being an LLC, S-Corp, or sole
property, specific federal and state regulations govern how you organize and manage your
business. For example, let’s examine a forensic investigator looking to open a laboratory. For this
laboratory to operate, it must pass accreditation by a trust organization such as Ansi Nation
Accreditation Board (ANAB). Suppose this forensic investigator fails to give or get an
accreditation examination and decides to service clients. In that case, this can lead to legal
ramifications ranging from closing the lab or lawsuits.
Also, while building this list of things that could lead to entrepreneurs getting in trouble, we can
examine the following:
Intellectual property right
Non-Disclosure Agreements(NDA)
Shareholder Agreements
Separation of business accounts
Hiring poor legal representatives
