08/04/2026
Starting a small business is an exciting milestone, but it also comes with legal risks that are often underestimated. Small businesses are the backbone of the U.S. economy, yet the data shows they face legal challenges far more often than many expect.
Here are several key statistics every business owner should know:
🔹Between 36% and 53% of small businesses face litigation or the threat of litigation each year.
🔹Approximately 45% of small businesses are dealing with an active legal dispute at a given time.
🔹Over the lifetime of a small business, the likelihood of facing a lawsuit is almost 90%.
🔹Small businesses take on an estimated $106 billion in commercial liability costs annually, despite having fewer resources than larger companies.
🔹Contract disputes are the most common type of business lawsuit, with roughly 12 million cases filed each year.
While these numbers are significant, many legal issues can be reduced or avoided with proactive planning. Working with a business attorney can help you put clear contracts in place, establish compliant policies, identify potential risks early, and navigate disputes more efficiently if they arise.
If you are starting a business or want to better protect the one you have built, contact us today to discuss how we can support you.
