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A look at how litigation impacts small businesses

Every year, business owners throughout the United States are taken to court. From allegations of fraud to business disputes involving breach of contract, there are many reasons why lawsuits are filed. However, for small business owners in Miami and throughout Florida, litigation is often particularly devastating and can spell disaster for the future of a company. As a result, the owners of small businesses should understand the potential consequences of litigation and do everything they can to prevent lawsuits.

According to a piece published by the U.S. Small Business Administration, business litigation can affect small businesses in a number of ways. In addition to legal fees and other financial consequences, litigation can cause significant emotional difficulties and permanently change a company's direction. For example, many business owners became more cautious when dealing with customers and employees after litigation. The SBA identified some of the most common causes of litigation, which include complaints from employees, problems directly related to services a business provides and customer dissatisfaction. Unfortunately, lawsuits can have such a tremendous impact on small businesses that some are no longer able to remain open.

When employees claim to have experienced discrimination due to their gender, ethnicity, religious beliefs or sexual orientation, they may decide to take legal action. Addressing allegations of discrimination in the courtroom can present a number of challenges and it is important for small business owners to understand their rights. On their website, the U.S. Equal Employment Opportunity Commission provides helpful information for small business owners who are dealing with alleged discrimination and want to protect their company from the consequences of business litigation.

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