If you are planning to start your own business, you probably know that there are going to be some unavoidable costs of doing business. This is just a reality of entrepreneurship. You should also know, however, that there are some significant, but avoidable costs of business. For instance, being hit with lawsuits can not only cost your business a significant amount of resources and even be financially devastating, but it is one that can be avoided, in whole or in part, by taking proactive steps to guard against such legal exposure. Here, we will go over some of the ways you can protect your business from lawsuits.
How to Protect Your Business from Lawsuits
One of the best ways to protect your business from lawsuits is to have proper record-keeping systems in place right from the beginning. Meticulous records can be the first line of defense against lawsuits and, in the event that a lawsuit does arise, these records can work to swiftly quash such legal action. When setting up your business, make record-keeping processes a priority. Make sure all of your employees are on the same page for how and where records can and should be safely stored. It may just end up saving your business at one point or another.
Another way to guard against lawsuits in your business is by putting strong, legally sound, written agreements in place. Your business will likely be involved in a number of important legal relationships which will merit putting a written agreement or contract in place. Such legal documents can range from employment agreements, to lease agreements, to vendor contracts. Be sure that these documents protect your business and clearly set forth the expectations for each party involved. Putting the work to make sure your legal agreements are robust on the front end can end up saving you a lot of time, money, and energy, further down the road by preventing disruptive disagreements from arising. When you have clear and legally sound agreements in place, it sets the tone and expectations for many of your most critical business relationships and dealings.
As a business, it is also important that owners, managers, and all employees be clear on relevant state and federal employment laws. This can range from wage and hour laws to protections against discrimination and harassment in the workplace. Employment laws can be complicated, but they are also vitally important to the health and wellbeing of a business and its employees. Failure to understand and train a company on relevant employment laws can create sizeable legal exposure for the business as a whole. Set up training for all employment levels in your company to make sure everyone is aware of their legally protected employment rights and what your company is doing to protect these rights.
Business Law Attorneys
Do you want to set up your business right? Talk to the dedicated business law attorneys at Jones, Gregg, Creehan & Gerace about how you can set your business up for continued growth and success. Contact us today.