As your small business grows, the sheer volume of tasks you're dealing with makes it easy to ignore some important legal steps. But doing so can put your entire business at risk. Here are three common legal mistakes small business owners make as they expand their companies. Don't let them put you out of business!

• Failing to protect your intellectual property. Many business owners don't bother to trademark their business name or logo when they first start out. Only when they begin to expand to selling products online or in a larger market do they realize there's a competing business with the same name. To ensure you have legal rights to your name, logo and more, visit the U.S. Patent and Trademark Office. 
   
• Instituting business relationships on a handshake. Business expansion often involves partnering with other companies. When you're excited about a relationship's potential, it's easy to get caught up in the moment and assume the best. Always create a written agreement specifying the rights, responsibilities and contributions of each party; percentages of ownership and profits; what will happen if either party decides to terminate the relationship and the like. RocketLawyer is one source for sample business contracts. 
   
• Hiring employees too fast. It's easy to hire, but hard to fire -- especially if you don't have proper legal documentation of your hiring and discipline processes. First, be sure you're not hiring independent contractors and treating them like employees -- this can lead to IRS penalties. Second, develop an employee handbook explaining expectations and rules for employees. Third, know and follow state and federal labor laws for hiring and managing employees. 

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