Running a company is by no means easy, and there are numerous factors to consider. Ultimately, you need to be able to make the business profitable long-term. You’ll also have to ensure that your staff are content and clients receive the standard of services you promise.
The truth is that as a business owner, you’re always vulnerable to litigation. Fortunately, there are a few things you can do to protect yourself.
1. Watch for conflicts of interest
As a business owner, every action you take comes under scrutiny. At some point, you’re going to have to work with other businesses and perhaps even government officials. It will benefit you to ensure that strategic partners are on the same page as your brand in terms of values and ethics.
Many businesses have been dragged into litigation through no fault of their own. Simply working alongside someone who has been exposed for unfair practices could place your company in danger.
2. Choose the right business structure
Choosing the appropriate legal structure for your business is also key to shielding yourself from litigation. For instance, if your operations are small, you may operate as a sole proprietorship. This has its advantages in the sense that you can get up and running quickly with your own personal funds.
The downside of this is that you can be held personally liable should litigation be lodged against you. Structuring your business as a corporation separates your personal and business assets. It also separates you from your business in terms of legal liability.
Whatever stage your company is at, you should also have legal guidance on your side. Not only will this reduce the risk of litigation, but it can prepare you for problems should that day arise.