Most business owners worry they will lose everything if they get sued, or their company fails. As a business owner, you must take all reasonable precautions. For instance, you can ensure that you and your employees take the proper certifications such as a CPR certification course. To help you reduce risks and maintain your company’s smooth operation, here are three steps you can take to safeguard yourself.
1. Hire a Credible Lawyer
Having continual legal assistance as your company expands will guarantee that you are taking the proper precautions to safeguard yourself, your enterprise, and its assets. For example, a credible lawyer can advise you and your employees to take a CPR certification course in case of accidents. It’s best to hire an attorney acquainted with your company and knowledgeable about the regional laws and customs in the region of your business’s location. When looking for a lawyer, it might be beneficial to look into recommendations from other business owners, business associates, and friends.
2. Set Up the Right Business Entity
Your choice of business entity will determine both your liability and the amount of taxes you pay. Creating the right business structure can provide a layer of legal protection and reduce stress during tax season. Consult with a lawyer in your state, and they can go over the different company entities and outline the benefits and drawbacks of each.
In the case of a lawsuit or debt, your assets, such as your investments and private possessions, may get seized if you run a sole proprietorship. A corporation or limited liability company (LLC) protects owners and stockholders from personal responsibility. That is if the firm is legally responsible for debts or penalties. In such cases, only your company’s assets get seized to meet the debts. The right structure can help build a wall between your personal and business assets.
3. Get Insurance and Provide Training
In case of workplace accidents, every business should have liability insurance to defend themselves, their employees, and the company in court. According to the U.S. Department of Labor, in 2020, 4,764 individuals died on the job. This emphasizes the value of making financial investments in life-saving measures like insurance and training courses such as a CPR certification course. Commercial liability insurance safeguards your company’s finances if your firm gets sued by a third party, such as a client or supplier. Businesses that produce items might benefit from product liability insurance. Professional liability insurance can protect you from lawsuits alleging carelessness or other mistakes related to client services.
Running a business requires knowing how to protect it legally. After following these three actions, your company could be better equipped to fend off legal action. If you’re looking for safety and environmental compliance training for your business, contact ETC Compliance Solutions today. We offer custom training!
