Starting a business is an exciting venture. Although you are likely focused on production and customer acquisition, you also need to focus on limiting liability. New businesses, in particular, are vulnerable to lawsuits if they don’t have a proper legal structure. To help your business, our Rockford business law attorneys put together five tips to help you protect your business from liability.
If you want to learn more about how to protect your business from liability, contact our Rockford business law attorneys today at (779) 235-9115 to schedule a consultation!
#1: Separate Yourself From Your Business
Choosing the proper legal structure is essential when starting a business. The type of business structure you choose will ultimately affect you if your business faces litigation. Although choosing a sole proprietorship might seem like the obvious choice for a business owner, it could lead to issues down the road. Sole proprietorships can be problematic in the event that your business is sued because your individual assets will be linked with the business. If you are unsure about your options, our team of experienced attorneys can help you.
#2: Get Insurance to Protect Your Business
It is also essential for business owners to obtain liability insurance. Liability insurance is helpful to protect businesses if they are accused of making an error or not living up to a contract. For example, if a customer or employee slips and falls in your office or store, liability insurance can help you cover the costs if your business gets sued.
Liability insurance can also protect you from times when it is impossible for you to fulfill a contract. You should discuss possible clauses and legal phrases with an attorney to ensure that your company is protected.
#3: Protect Your Files
It’s likely that most of your company’s documents will be stored on computer files. For such reasons, it is important that you protect your files and intellectual property from hackers. You should make sure that you have a set of backed-up files to refer to if you experience any technical problems. You should have daily, weekly, and monthly backups of your files to ensure that you don’t lose any important documents that can impact your company’s production or operations.
#4: Protect Intellectual Property
Another important tip is to protect your intellectual property – whether that’s logos, product designs, and other trade secrets. Intellectual property is what gives your company a competitive edge, so you want to protect it. An attorney can help you determine which legal documents you need, whether it’s nondisclosure agreements or copyrights.
Learn more about protecting your intellectual property in our blog post here.
#5: Hire an Experienced Business Law Attorney
The best way to protect your business is by having an experienced business lawyer on your side. An attorney can help you address legal issues and can also help you take proactive steps to reduce legal threats. Every business’ legal threats are different, so you need an attorney to review your company’s structure to ensure that you are protected on every level.
Our team at Reno & Zahm LLP can help you as you start your new business. We understand the issues and opportunities facing businesses of all sizes or at any stage of a company’s life cycle. Whether you need help with contractual obligations, employment law, insurance coverage, intellectual property, or warranties, our team has the knowledge and experience needed to help you. With 100 years of experience as a firm, the attorneys at Reno & Zahm are dedicated to finding the best legal solutions for their clients and their community.
Get in touch with our Rockford business law attorneys today at (779) 235-9115 to schedule a consultation!