Starting a new business is exciting, but there are so many things you need to think about when it comes to setting up shop. One of the most important things you need to consider is how to protect your business.
Thankfully, there are some pretty easy ways that you can help your company stay out of trouble with the law.
How To Get Going In Business
Anytime you have a business, you’ll have liabilities to worry about, including business debts. These claims can come from the government and the factory’s suppliers. In fact, if you’re not fully protected, your company could be held liable for a host of financial mistakes that could have been avoided and prevented.
With that in mind, here are some of the ways to help protect your company from liability (and as such, protect yourself and your business):
Location, Location, Location: Where to Start Your New Business?
Where you open your business is important for a variety of reasons, one of which is to avoid personal liability.
The general rule is that you should stay away from selecting a location that exposes yourself and your company to personal liability. For example, if the business operates out of a home office, then you’re automatically exposed to lawsuits.
The same holds true for businesses that are set up in storage spaces or even in the back seat of your car!
It’s far better to find a secure space where there are no personal exposures, like an office building or independent location.
If you need space but have limited funds, you can often rent shared offices or coworking spaces and work from there.
Legal Structure and Choosing the Right Entity
The first step is making sure you have a properly-drawn contract with all parties involved in the business. This will help ensure that everyone knows what they’re expected to do and when they’re expected to do them, so there are no surprises.
You’ll also want to think about setting up an LLC (Limited Liability Company), which will shield your personal assets from any lawsuits filed against your company by limiting their liabilities, as well as establish many helpful tax deductions.
Hiring In Experts In Their Field
It’s always best to use legal professionals when you can. It’s much cheaper to pay an expert, such as professional Public insurance adjusters, for example, to handle the paperwork than it is to pay to fix a mistake later, or worse, deal with trouble in court.
This also applies when hiring an accountant or bookkeeper who can help you keep up with your company finances.
Avoiding Fraudulent Misrepresentations
You should never make false claims about your company or product, nor should you misrepresent what your company does and how it does it from the onset.
Otherwise, you could face legal liability for fraudulent misrepresentation later on, especially if someone relied on what you said in making their decision about buying the product or service.
Unfair Competition
You should never use unfair competitive practices when doing business.
That includes anything that involves trademark, copyright, patent or trade secret infringement, and misappropriation of trade secrets.
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