When you operate a small business, you want to do everything in your power to avoid being sued. However, even when you are acting diligently, there can be situations when it won’t be possible to avoid a lawsuit. Therefore, as an owner, you need to know: How much does a small business lawsuit cost?
Florida Small Business Lawsuit Costs
Several factors can affect how much a small business lawsuit may cost. The expense often depends on variables such as:
On average, business owners can expect to spend approximately $56,000 to $91,000, depending on the type of small business lawsuit. However, if you or the other party requires extensive discovery or insists on taking the case to trial, your legal costs may be far higher.
Will My Small Business be Sued?
According to statistics, 90% of businesses will be sued at some point while in operation. Breach of contract claims are by far the most common type of small business lawsuit. However, there can be other types of small business-related cases, including those concerning personal injury, wrongful death, and employment discrimination.
Depending on the type of business you are operating, you may have more or less risk. For instance, a business with customer foot traffic may be exposed to more tort (slip and fall) liability than an online operation. Likewise, a small business that routinely uses several complex contracts will probably be more at risk for breach claims than one that does not. Further, a sole proprietorship may not have the same employment-related issues as a larger company.
Mitigating Small Business Lawsuit Risks
Being sued can be stressful and expensive. But, the good news is that there are ways you can help mitigate small business lawsuit risks. First and foremost, you can protect your enterprise by working with an experienced small business attorney. Your lawyer can help you develop and negotiate contacts, evaluate your business practices, and identify ways to safeguard your interests.
Limiting Liability with Your Business Structure
Your business lawyer can also help you determine the best business structure for your venture. Some formations will allow others to sue you for your personal and business holdings. However, you may have the option of forming a limited liability partnership (LLP) or limited liability company (LLC). Under these structures, only your business assets will be subject to the suit. You may also want to consider forming a corporation.
In business, as in many other areas, the best offense is usually a good defense. Working with an experienced Florida business attorney can help you plan for the future and protect your small business. If you have been sued or are concerned about a lawsuit, you should contact a Florida business attorney as soon as possible to discuss your case. Your counsel can help you review your circumstances and identify potential strategies and defenses.
Contact an Experienced Florida Business Attorney
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with 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 small business 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.