Estimated reading time: 2 mins
Being involved in a lengthy lawsuit is any business owner’s worst nightmares. Unfortunately, people these days will try to sue you for just about anything. If you aren’t careful, you could end up wasting valuable time and money in court and if you lose, it could seriously damage your business permanently. When you’re a small business that’s just starting out, it means the end of your company for good. That’s why it’s so important to protect yourself from getting sued. Here’s how you can do it.
Hire A Lawyer Immediately
So many businesses find themselves in trouble because they only start trying to find legal assistance once somebody has already taken a lawsuit out against them. By that time, it’ll be too late and you’ll be rushing to find somebody. When you’re in a rush to find somebody, your standards will slip and you might end up with somebody who isn’t that good. A lawyer that isn’t great will seriously reduce your chances of winning the lawsuit and could end up costing you. When you first set your business up, you should interview some lawyers and find somebody suitable so if anything ever does happen, you’ll be prepared.
If you do find yourself losing a lawsuit, it’s going to cost you. If all of that money is coming out of your own pocket, it’s probably going to ruin you. That’s why it’s so important to insure yourself as soon as you get started. Getting liability insurance should cover you against the majority of lawsuits. It can be a bit of a legal minefield but companies like qdos accounting can help you to get it all set up. The costs aren’t that high so it’s not sensible to skip out on it.
Keep A Record Of Everything
The best way to win a lawsuit is to have enough evidence to prove that you haven’t done anything wrong. If you aren’t keeping good records, you’ll find that you lack sufficient evidence when you get to court. You never know what is going to be relevant in a lawsuit so even if you think that you’ll never need something again, file it away anyway. Also, make sure that you keep a backup of everything as well. Saying that you’ve accidentally deleted something off the computer won’t get you any sympathy in the courtroom.
Start A Trust
If you are a sole proprietor of the business, then your assets will be liable in the event that you get sued. That means that you could lose your car or even your house if you don’t have the money to pay a settlement. However, you can protect yourself from this by creating a trust to own the business. When you create a trust, the business will no longer be in your name. You can still run it in exactly the same way that you would normally, but you have an extra layer of protection. Your assets will be completely separate from the business so any liability won’t extend to you. That way, if you get sued, there’s no chance of losing everything.
It’s vital that you sort out all of these things as soon as you get started. You never know when the worst could happen.