Protect Your Business

5 Tips to Protect Your Small Business:

 

Keep an Eye On What You Say and Do:

First of all, when it comes to your business image, owners and their employees should avoid making any public announcements either conducting any business that might be considered questionable. 

This means avoiding things like libelous or potentially slanderous statements. it also means not doing business with unscrupulous individuals and you may not think it is a problem working for a group of individuals who are known for shoddy business practices. Because you know your company ethics are above re-proach but if they take a hit and your company’s name may be linked to them in the fallout.

Hire Competent Attorney:

Business owners should interview attorneys when they first startup to have a standby legal contact and you may need this person to advise you before you act or on how to react when you have been sued. Owners should also attempt to secure an attorney that is familiar with local laws and customs in the area in which the business operates and Care should also be taken to retain an attorney with expertise in a particular field. If necessary, If your company is anticipating legal challenges from the Internal Revenue Service (IRS) or a state department of taxation then it makes sense to hire a tax attorney for a safe business.

Separate Urself From Your Business:

Many entrepreneurs own and operate their businesses as sole proprietorships, so the only problem with this is that in the event the company is sued and the owner's individual assets such as their cars or home are fairly easy to attack or attach in a court of law.

The solution to this is or at least a way to limit the possibility that the owner's personal assets might be the target of a suit which is to have a trust own the business. A trust is a legal entity that in the most cases, files its own tax return and can own property, businesses, cash, securities and a host of other assets. If a properly established trust owns a business, then it is sued or in most cases the only assets that can be attacked or attached in a court of law are those that are in the trust itself.

Protect Yourself While Be Insured:

All businesses should obtain liability insurance in case a customer was to slip and fall in your place of business and Certain professionals, such as insurance agents and other consultants should also consider obtaining errors and omissions coverage to ensure the business would be protected should a customer or client accuse the owner of making some error or not living up to a contract.

If the business is large and has a formal board of directors then, it may also make sense to secure directors and officers liability like D&O insurance. Once purchased, this insurance protects the directors and personal assets in a larger suit against the company.

Protect Your Files Appropriately:

Most businesses these days are doing work quite intensively on computers and so it makes sense to emphasize the safety requirements for your computer system. Businesses should have updated antivirus and other types of security software loaded and activated on their systems, like If a computer system were to go down because of a virus the business might be at risk of not being able to perform certain contracted work. 

Also, key files could be lost or stolen and which could then lead to legal action from clients and suppliers.

Key Component:

Business owners have the responsibility to protect their companies and their personal assets in the event of a lawsuit. So, with these five actions under your belt and your business should be well on its way to a legal & hassle free future.



I hope this information helps you in the future!