When managing a new business, there are a ton of things that you have to keep in mind to ensure success. Paperwork, finances, and operational procedures are some elements of any business. However, the one thing that trumps them all is legal protection. Today we’re going to go over ways to keep your business from lawsuits. Whether it’s from former employees or your business partner, it’s crucial that you keep your company in good legal standing.
File and Maintain All Paperwork
You already know that there is quite a bit of documentation needed when first starting your business, but it’s also critical that you keep them up to date. Business licenses, seller’s permits, and other paperwork can require renewal on a regular basis, so don’t let any of them lapse. https://www.govdocfiling.com is a fantastic resource to file anything from LLC forms to articles of incorporation.
Put Everything in Writing
Oral agreements may be more expedient, but when push comes to shove, it can cause some major headaches if one of the parties reneges on a deal. As such, it’s imperative that all pertinent details are written down and signed off by everyone involved. This is most crucial when having business partners, as you want to outline things like profit sharing, ownership, and division of responsibility.
Seek Legal Advice When Necessary
If you are put in a bind, then you don’t want to try and figure things out for yourself. Instead, contact an attorney or other legal entity and ask what your next move should be. Whether it’s a lawsuit waiting to happen or someone threatening to sue, the sooner you get counsel, the better off you’ll be.
Separate Business and Personal Issues
Unless you file as a sole proprietorship, you should maintain a certain level of distance between your company and your regular life. This includes how you conduct yourself around employees as well as any financial ties. Make sure that you are paying yourself through proper channels and don’t get any of it mixed up, lest you find yourself getting an audit.
Overall, when it comes to legal protection, the best thing you can do is be extra diligent to ensure you are completely covered.