As a business owner, your goal is to keep your business flourishing and growing. Doing this involves being wary of potential lawsuits. This is where a litigation lawyer comes in—they can provide you with the right advice to protect your business even before a dispute arises.
While not 100% preventable, there are ways you can reduce the risk of your business getting sued. Read on to learn more.
Have the Proper Business Structure
Operating as a sole proprietor, while simple and easy, allows your personal assets to be dragged in case of a lawsuit. A limited liability company (LLC) will only involve business assets, not personal ones, in case you’re sued. A corporation provides the strongest protection from personal liability but comes with many regulations and compliance requirements.
In converting from one structure to another, you’ll have to coordinate with your respective secretary of state. The requirements, like forms and articles of organization or incorporation, vary per state, so you have to determine which ones you’ll need to present.
Knowing the right structure for your business is essential in protecting it. Our business lawyers can offer you advice and assist with creating your business structure.
Secure Your Documents
In doing business with individuals or groups, it’s critical to have the proper documents that state the privileges and obligations of the involved parties clearly. Partnership agreements, employment contracts, non-compete agreements set the right expectations and protect your business in case a dispute arises. Our business lawyers can draft your contracts and, if necessary, enforce them to protect your business.
Along with having these documents at hand is making sure they’re safeguarded. If they’re stored in your computer, make sure you have antivirus and other necessary security software. You should also have them backed up for extra safety.
Mind Your Words and Actions
Preserving the image and reputation of your business is crucial. Make sure that the announcements and statements you release to the public are not problematic or defamatory. When marketing products, avoid misrepresentation and inaccuracy.
If your business isn’t insured yet, make an appointment with an insurance broker as soon as possible. It’s important to have general liability insurance, for one, as this is your protection in case anyone gets hurt within your business premises.
Train Your People Well
Properly train your staff to handle business processes smoothly and efficiently to avoid making any errors. Make sure they’re keen and knowledgeable enough to spot and prevent potential liability risks.
When in doubt, turn to Craig, Terrill, Hale & Grantham, LLP in Lubbock, TX. Here, you can speak with a litigation lawyer for more professional advice on maximizing your business’s protection against possible lawsuits. Contact us today to learn more.