Owning and operating a Florida small business can be a dream come true. However, this type of endeavor can also come with significant risks. Even the most careful and conscientious business owners can be subject to lawsuits and liability claims. Some of which may involve an owner’s personal and business assets. In this type of situation, it’s essential to be knowledgeable about asset protection and your Florida small business.
Forming Your Florida Small Business
When opening a Florida small business, owners have multiple options. However, the risk varies by business structure. For example, someone operating a sole proprietorship can be sued for personal as well as business assets. By contrast, owners who form a Corporation, Limited Liability Company (LLC), or Limited Liability Partnership (LLP) can protect their personal assets. This is because when a claim is made against a corporation, LLC, or LLP, the claimant can only pursue assets owned by the business. In other words, the business owner cannot be held personally liable for the debts and liabilities of the enterprise. Therefore, forming a business structure that provides this level of protection is usually considered to be preferable to a sole proprietorship.
If you require assistance selecting and establishing a Florida business entity, you should contact an experienced Florida business attorney to discuss your options. Your Florida business counsel can explain the pros and cons of each type of structure and help you determine the business structure that will best meet the needs of your small business.
Obtaining Adequate Insurance
Another way to protect your assets is by ensuring you have the right type and amount of insurance for your Florida small business. You will want to consider the risks associated with your business when acquiring insurance. For instance, if you have a work location with employees, you may need coverage for personal injury and other tort liability claims. You and your Florida business attorney can review your enterprise’s risks and identify your insurance coverage needs.
Developing Clear Contracts
Contracts are often an essential part of operating a Florida small business. These vital instruments can help an entity grow and thrive. However, they also have the potential to be the source of conflict and even litigation. When a business has a well-drafted contract in place, it can help create certainty for the parties and prevent disputes. Therefore, these legally binding agreements should be created and reviewed by an experienced Florida business attorney. Your Florida small business lawyer can help you develop comprehensive contracts that serve your business and protect your interests.
The best way to protect your assets and enterprise is by working with a Florida small business attorney. Your Florida small business lawyer can help you identify potential risks and plan for the future. In addition, your counsel will have the knowledge and experience you need to meet the unique needs of your growing business as it changes and evolves.
At the Florida Small Business Center, we understand the importance of asset protection when you have a small business. We have the experience to help you protect your personal and business interests.
Contact an Experienced Florida Business Lawyer
Attorney Richard Sierra at the Florida Small Business Legal Center assists clients like you with commercial leasing, business, and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.