When you own a business, you are susceptible to different kinds of claims from clients, consumers, and other businesses. This is the reason you must ensure your business has proper insurance. Your business could close down due to payouts for liability claims if you don’t have enough insurance coverage. Also, it is important to have an attorney in London, KY you can trust. A great attorney will fight for your company’s rights. To avoid legal liabilities, here are some tips to consider:
Watch Your Actions
As a business, you need to maintain a positive image. Because of this, you must avoid making public announcements or doing questionable business. This includes slanderous or libelous statements and doing business with fraudulent individuals. Also, it is important to reduce possible conflicts of interest.
Hire an Experienced Business Lawyer
When you start up a business, meet with some lawyers to have legal counsel to contact whenever necessary. You may require legal advice before you take a business-related action or get information on the steps to take when you face a lawsuit.
Choose a lawyer who knows the London, KY laws and customs and has extensive experience in the business field. If you expect legal challenges from the tax department, you may want to hire an attorney who is familiar with taxation.
Separate Your Personal Finance from Your Company’s Finances
Operating a business as a sole proprietorship can be problematic when your company is sued due to your individual assets. To limit the potential of your personal assets being a target of a lawsuit, consider having your business owned by a trust. When your trust-owned company faces a suit, only the assets in the trust can be attacked.
In addition, you can also consider incorporating to separate the finances of your company from your personal finances. With this, your personal wealth will be safe from attack should you lose your business in a judgment. However, this requires you to understand and stay abreast of the additional laws, taxes, and reports required for a corporation. Thankfully, a competent business lawyer can make this aspect easier for you.
Purchase the Right Insurance Coverage
Every business must buy liability insurance, which could save you from paying thousands of dollars out of pocket when someone successfully files a claim against your business. Also, you can consider getting errors and omissions insurance to protect your business when a client or customer accuses you of making an error or failing to live up to a business contract.