Are you a brand-new small business in the Kansas City area? You may have legal questions like – do I need a small business attorney? We can help at Saxton Law Firm in Kansas City, MO. We practice small business litigation here at Saxton Law Firm and many small business owners need to know how to protect their small business from lawsuits. Here is a better look at how you can protect yourself and your business with a few simple legal tips.
Top 5 Ways to Protect a Business from a Lawsuit
When you start a business, you invest your time and money to create a future and it is important that you protect that investment, your business and your own personal assets. A few precautions can help you protect your business and prevent potential lawsuits in the future. Use this quick list created by Saxton Law Firm to help protect your business in the Kansas City area.
1. Keep Written Agreements, Contracts and Documents
When you start a business, your records can help protect your business in the event of a lawsuit and many business owners do not know what records, agreements and contracts to keep on file. Documents that you should keep on file fall into four primary categories – employee records, tax documents, legal documents and supporting business documents. Here is a list of documents you may want to keep on paper and in digital form.
- Work Authorization Forms
- Payroll Documents
- Employee Agreements and Contracts
- Personnel Records
- Gross Receipts
- Purchase and Expense Receipts
- Employment Tax Records
- Corporate Financial Records
- Business Licenses and Permits
- Business Founding Documents
- Purchase Records
- Sales Records
- MORE…
2. Use Smart Employment Practices
A smart and clearcut code of conduct for your business can help you protect your business and avoid lawsuits by former employees and customers. Be familiar with state and federal employment laws on harassment, discrimination and employee privacy to help create an employee code of conduct and policies. The most important part of this step is to enforce the employment laws and your own code of conduct. Employee Practices Liability Insurance can help protect your business.
3. Separate Personal and Business Finances
The business structure you choose has an impact on asset risks, taxes, operations, legal standing and benefits – which makes it more important to choose the right business entity for your needs. When you form your business, choose a structure that will separate personal and professional financial assets. This will help you protect your own personal assets in the event of a lawsuit.
4. Understand Business Insurance Coverage
Accidents happen in the workplace that can injure employees, damage equipment, interrupt business and much more. As a business owner, it is important to have the right insurance coverage to protect your business from a lawsuit. Insurance coverage you may want to consider includes – general liability insurance, commercial auto insurance, business liability insurance, business interruption insurance and umbrella insurance.
5. Hire a Small Business Attorney
A small business attorney can help protect your business in multiple ways. An experienced small business attorney can help you write legal contracts that protect your business, can provide legal advice, can help you remain compliant with employment laws and can represent your business in the event of a lawsuit. Saxton Law Firm can help you and your business.
READ MORE: What Are the Most Common Types of Small Business Lawsuits?
Do you have questions about how to protect your small business from lawsuits? We hope this list of ways to protect your business by Saxton Law Firm can help you take the necessary steps. Contact Saxton Law Firm today for a FREE case review and legal consultation!