At home, you probably keep an emergency kit on hand, perhaps a fire extinguisher, and a smoke detector… just in case. In the same way, business owners should also have preventative strategies in place. This might be a disaster plan for natural disasters, off-site computer back-ups, fire drills, hiring policies, and a variety of other precautions to prevent massive financial losses.
How Legal Assistance Can Keep Your New Business Protected
Even if you do everything right and plan carefully, you can still be subject to a lawsuit. Someone can fall on your property, someone can claim you unfairly discriminated against them, or your product could cause an injury.
Experts in the field of business law can help you avoid legal issues. This prevention means you should anticipate any legal conflicts that could arise and prevent them before they happen. This is a less expensive approach and minimizes expensive legal issues needing litigation, arbitration, or mediation.
When you hire an attorney to look at your new business and help you create all of the needed documentation, you will be able to save money later. Here are three things you can do to prevent legal issues from surprising you as your business grows.
Contact an Attorney Early
Establish a relationship with a reliable attorney who specializes in commercial law who can help with legal issues and create the new business documentation you need. When an attorney understands your business, they can anticipate future legal obstacles. Plus, it is in your best interest to start a client-attorney relationship from the beginning as it allows for you to pay a flat fee.
Put Everything in Writing
Put all of your business documents in order. Write out the bylaws of the business and have an attorney put them into the proper contracts. As a business, you may eventually have disagreements with landlords, employees, vendors, and clients. To minimize any disagreements, get your attorney to make these documents for you.
The business lawyer can spot the pitfalls of a contract, employee compensation, and benefits. They ensure that your interests are represented.
Get Liability Insurance
There are a variety of different types of insurance that cover you in case of a lawsuit. These include Professional Liability, Umbrella, and Directors and Officers Liability insurance.
Select The Legal Entity That Fits Your Business
There are several steps in starting a new business. And the very first step needs to be the business’s legal structure. A reliable lawyer can help you determine how to register your business legally.
Registering a corporation has many advantages but requires a board of directors and several officers. It also requires articles of incorporation and other legal formalities. Sole ownership may be easier to register, but it also opens an owner to liability issues that could result in personal loss. Your business lawyer will help you choose the right business structure.
According to Investopedia, “A limited liability company (LLC) is a business structure in the United States whereby the owners are not personally liable for the company’s debts or liabilities. Limited liability companies are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship.”
An attorney can help set up the legal functionality of your business to prevent or minimize future legal problems. They will take into account your tax planning, the location, and other considerations that could prevent a future lawsuit. It is a strategy that helps you make the best decisions for your company and focus on your business’s day-to-day operations.
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