Get ready with an experienced lawyer. Separate your personal finances from those of your business. Building your business with the right structure as a start-up company will protect your personal and business assets as your company grows. All companies must take out civil liability insurance in the event that, for example, a customer slips and falls in their establishment.
When you create your company, it's worth talking to a corporate lawyer about the structure of the company, managing future revenues, and your liability protection plan. Two of the main lawsuits against small businesses are employee discrimination and wrongful dismissal. A trust is a legal entity that, in most cases, files its own tax return and can own property, business, cash, securities, and a range of other assets. You may not think that working for a group of people known for their shoddy business practices is problematic, since you know that your company's ethics are beyond reproach, but if they come to light, your company name could be related to them.
In today's climate of “cancellation” culture, depending on the nature of the litigation, the loss of business can be even more devastating than the cost of resolving a lawsuit. Business owners are responsible for protecting their companies and personal assets in the event of a lawsuit. If your facility is not considered safe enough for any reason, an attorney can pursue your business if someone is injured or dies on your property. One way to limit the possibility that an owner's personal assets may be the subject of a lawsuit is to make a trust own the business.
Companies that refuse to serve a customer based on religion, race, gender, age, sexual orientation, or disability may face a discrimination lawsuit. Challenging a lawsuit is much more difficult than taking appropriate steps to avoid small business litigation in the first place. The best way to handle business litigation is to take every precaution to avoid them in the first place. If you're a business owner facing litigation or want to talk about how you can protect your business and assets, contact Sequoia Legal to schedule a free consultation.
If you don't immediately address potential liability, employees or customers can take legal action against your company for even the most common accidents, such as a fall on an icy sidewalk without salt.
