When you open your own business, you know there will be risks. One of these risks is the possibility of being sued. Even when you try to do everything right, there is always the chance that someone somewhere will decide to file a lawsuit against you or your enterprise. While you may not be able to prevent everything, you can take steps to help safeguard your business from legal actions. Here is more on how to protect your business from being sued:
1. Work With an Experienced Business Attorney
The best way to protect your business from being sued is by working with an experienced business attorney. Your lawyer can help you assess the risks and develop strategies that can protect your interests, support your goals and mitigate litigation risks.
2. Identify Potential Risks and Plan Accordingly
As you and your attorney assess your business, you should consider areas where you may have more exposure. For instance, if you are selling a product in a retail location, you will want to think about potential vendor and customer contract disputes. Additionally, there may be tort (personal injury) liability concerns. For instance, you may have employees or customers using your premises. If someone is hurt, they could sue your business for personal injury damages.
3. Choose the Right Business Structure
Another way to help prevent lawsuits is by choosing the right business structure. In Florida, many business owners choose to establish limited liability companies or partnerships. These structures restrict business-related liability to the entity, meaning someone suing cannot reach the owner’s personal assets. Additionally, these business formations provide some formalities that can help establish order and prevent disputes. There is also the option of forming a corporation. This structure has more requirements that may be well-suited to a larger enterprise.
4. Keep Your Personal Interest Separate
When you have an LLC, LLP, or corporation, you get the benefit of limited liability. However, to maintain that protection, you need to keep your personal interests and funds separate from that of your enterprise. When members, partners, and officers mix their finances and interests into business-related actions and decisions, it can be a recipe for disaster. By maintaining professional boundaries, you can help protect the business and prevent future conflict.
5. Get it in Writing and Document everything
Not all Florida contracts have to be in writing. However, to protect your interests, contracts and other important business-related actions and decisions should be in writing. When in doubt, err on the side of caution and get it in writing. In addition, you will want to be sure to keep clear and consistent documentation of your activities. Having a written record can help protect you later if there is a dispute.
You will want to adopt solid, consistent business practices when operating your business. Everything from your employee handbook and disciplinary policy to how you interact with the vendors, clients, and others should be done with precision and care. Your reputation matters, and you want to be known as a well-ordered and sound enterprise. Your business attorney can help you identify ways to operate that will promote your business’s success and help you avoid being sued. Contact an experienced business lawyer today.
Contact an Experienced Florida Business Attorney
Attorney Richard Sierra at the Florida Small Business 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.