Run The Money
Follow Run The Money

Protecting Your Small Business From Legal Action

  • June 24, 2021

If you're reading this, I'm earning money. Thanks for helping to feed my family. Please see our disclosure for more information. Also, any advice provided is for informational purposes only. I'm not a CPA, lawyer, or doctor, although my parents wanted me to be all three. So, talk to a professional before acting on anything you read below.

Even if you are dedicated to running an honest and responsible business, it doesn’t mean that you’re never going to face up against legal trouble. Indeed, business law cases don’t always deal with the big, bad corporations. Small businesses can just as easily get tangled up in some legal hot water and the risk to them can be even greater. For that reason, here are a few ways to make sure you’re protected in such events.

Know your legal obligations

You can’t be an expert in all parts of business law without the right training. However, you can make sure that you know the core of the legal obligations and requirements that you need to follow. Gaining an understanding of basic business law and making sure that the policies within the business meet them as best as possible is an effective way to reduce the chances of wrongdoing in the business. You might want to work with some experts, be they HR agencies or health and safety auditors to make sure that you’re covered in-depth, where you can be.

Make sure you have the right protections in place

At some point, it becomes somewhat likely that you might have to make a payout if, for instance, someone has an accident on your premises. A slip and fall might be more expensive than you think, which is why it’s in your best interest to have it paid for through liability insurance through teams like Coverhound. Not only can you be forced to pay more than you would otherwise if it goes to court, but you will also have the legal fees to deal with.

Have the experts on your side

Whether you’re creating policy to keep the business legally safe or you’re forming new contracts and business agreements, you should make sure that you’re legally protecting yourself as best as possible. As such, it pays to have legal counsel like Spodek Law Group just a phone call away. Furthermore, you should already have a business lawyer that you can reach out to should you get hit with any legal trouble so you can craft your defense strategy as soon and best as possible.

Be sure you’re not too close to your business

Protecting your business is one thing. However, if you fail to do enough to separate your personal life and business life, then any legal troubles and payouts your business has to face can result in personal hardship and debt as well. This is why setting your business up as an LLC, keeping separate bank accounts, and paying yourself a set wage can all help. It establishes the business as an identity that is more distinct and separate from you.

If you’re not able or willing to spend the time mustering the defenses as mentioned above, then you may need to look at preparing to put more money towards legal defenses in court. Of course, the costs of being taken to court go beyond just the financial, so it’s better to follow the tips mentioned here.

>