As a business owner, it's extremely important to do what you can to protect yourself from being sued by others. In addition to other tips, a corporate lawyer from a place like Carter West Law can help you make sure your business is set up properly to lessen the risk. Here are five tips you can take to defend your business assets.
Choose Your Business Associates Wisely
While the primary goal of your business is to gain new customers and make money, you want to make sure your customers are above reproach. Don't deal will unscrupulous characters who could potentially cost you everything. For example, if you have an accounting service, you want clients who are interested in following the rules, not ones who will expect you to skirt them. Even if you conduct business professionally, clients who don't can leave you in the fallout if they are caught in a scandal.
Hire A Skilled Corporate Attorney
Don't start a business without first seeking the counsel of an attorney. Their advice can be priceless in matters of business organization, securities and investments, whether or not to take your company public, and dozens of other legal concerns. You will also need adequate counsel should you find yourself being sued or slandered.
Have Adequate Insurance
Slip and fall accidents at your place of business is just one thing to worry about. Slip and fall accidents can easily happen if your parking lot is slippery or your floors are wet. Make sure you choose liability insurance coverage that will protect you in the event one of your employees or customers are injured at your establishment.
Don't Set Up A Sole Proprietorship
While a sole proprietorship is extremely easy to set up, this type of business makes you personally accountable for any losses it suffers. Should you find yourself being sued, with a sole proprietorship, your bank accounts, vehicles, and home and other personal property are all fair game for the courts to dispose of if you lose the lawsuit. An attorney can advise you on what type of legal business, like a corporation, would be best for you. They can also set up a trust for you. A trust can have its own property, equipment, and bank accounts rather than keeping everything in your name.
Protect Your Computers
If you store sensitive customer information on your work computers, it's important that you have data encryption in place. You will also want to make sure you have backup files and a safe place to store sensitive information. To avoid being sued for compromising someone's information, make certain you hire an IT service to oversee your needs.
