Protecting Your Small Business & Preventing Lawsuits

Three people having a conversation in an office.

Small business owners are typically focused on the day-to-day operations of their companies, but lawsuits against small businesses can and do happen all the time. A lawsuit can grind business to a halt and take up valuable time, money, resources, and even your reputation. How can you protect your small business? While it's impossible to promise that your small business will never get sued, there are some steps you can take to lower your risk of litigation, and the first of these is to get a small business attorney on your side from the start. For many small businesses, keeping a lawyer on retainer isn't in the budget, but with our Small Business Legal Protection Plan Subscriptions, you, too can have the peace of mind of knowing that your legal bases are all covered. Read on for more steps to protect your small business from legal problems:

Choose the Right Business Entity From The Start

Knowing the legal requirements for setting up a business is the first thing any person who is thinking of starting a small business should do, as this is often your first line of defense for protecting yourself and your assets. There are certain legal requirements needed for each type of business entity, and you can learn more about each in our Small Business Series here at our blog.

Get Everything In Writing

Verbal or handshake agreements aren't enough to protect your small business from lawsuits. Every agreement your business enters into should be backed up in writing, the contracts reviewed by an attorney, and signed by all parties involved. These agreements can be for non-disclosure agreements, non-compete agreements, and, of course, contracts. You'll likely encounter many different types of contracts in the course of doing business, including purchasing equipment, employment contracts, vendor contracts, maintenance contracts, rental agreements, and many more. Making sure that contracts are properly prepared to be legally enforceable in your state, clearly define responsibilities and rights of all parties involved, contain proper dispute resolution, default, and termination clauses, among other items, is critical.

Understand Employment Law

If your small business will have employees or contract workers, you will need to understand the ins and outs of employment law. Consulting with an experienced, dedicated employment attorney can help you not only understand laws as they pertain to the rights of workers, but your business' rights and responsibilities, how to assemble an employee handbook with legally enforceable guidelines for employees and contract workers, unemployment, termination, and much more.

Intellectual Property Protection

One of the most complex areas of business law includes intellectual property law, which includes copyright, patents, and trademarks. Making sure that intellectual property owned by the business isn't resold by former employees, that your inventions don't violate someone else's patents or copyrights, and making certain that your branding and logos are free from infringing on someone else's intellectual property are all things that a small business attorney will be able to handle on your behalf. This includes research, preparing paperwork, and helping you address any infringement issues that may crop up over time.

Taxes

Another complex area of business is taxes. Again, a small business lawyer well versed in the ins and outs of tax law will be able to help minimize tax burdens, avoid audits, protect your personal assets, and put your mind at ease.

If the thought of your small business getting sued makes you nervous, protecting your company can be far easier than you might have imagined. Our Small Business Legal Protection Plan subscriptions can put you in contact with a small business attorney in your state who can help you navigate all legal aspects of your small business, from choosing a business entity to contracts, to debt collection, to employment issues, and much more. Learn more about all the benefits of our Small Business Legal Protection Plans, or sign up now!