Running a business can be very rewarding, but doing so comes with legal risks. For this reason, business owners should be mindful of the way that managers and employees not only interact with one another but also with customers. In addition, there are many other ways to avoid running into legal trouble. For some guidance, consider these tips.
1. Put Agreements in Writing
When many commercial clients turn to the help of legal firms such as Tully Rinckey Law, it is because there is a dispute about some kind of partnership agreement that was never put into official writing. With this in mind. take a moment to consider how many agreements your business works with. Are all of your documents finalized? How is the organization of these files?
2. Keep Accurate Records
Not only do your agreements and other documents need to be organized, but they also need to be accurate. Another common reason that attorneys such as Tully Rinckey see so many commercial dispute cases is because of poor or inaccurate recordkeeping. To help prevent this situation in the future, create a standard protocol for creating, editing, and organizing all records.
3. Follow Sound Employment Practices
Following best employment practices is not only a good idea for creating a solid team-oriented work culture at your company, but it is also a smart way to avoid common lawsuits. In many cases, employee discrimination or other types of disputes concerning employment practices toward employees occurs. For many situations, the problem could be avoidable with clearer documentation, better training, or improved communication.
4. Protect Your Reputation
Sometimes, employers hire and retain employees despite controversial issues that occur. For example, an employee might post something offensive on social media. One way to avoid legal problems is to always make an effort to protect your company’s reputation in the scenarios. At the very least, indicate that your brand’s views are separate from those of your employees. Depending on the nature of your industry, products and services, you may also want to conduct background checks.
5. Ask a Legal Pro
Running a business comes with many new legal requirements and scenarios that most business owners are not familiar with when first starting out. If you have not yet worked with an attorney at a reputable law firm, doing so can be a good way to ensure that your business does all that it can to avoid legal problems in the future. A lawyer can also help you work through any government requirements that you run into.
6. Separate Personal and Business Finances
Money is another top reason why commercial clients end up at law firms. As a number-one rule of business owner advice: always separate personal and business finances. Otherwise, you can quickly run into a downhill financial blunder that not only harms your professional image but can also destroy your personal finances as well. Applying for a separate tax identification number can help you do this.
7. Invest in Business Insurance
Even with careful planning, sometimes disasters, employee mistakes, and emergencies happen. When they do, legal liabilities often arise. To help avoid lawsuits in these scenarios, it is smart for companies to invest in small business insurance from the very beginning. Without a doubt, it is too risky for companies to function or hire employees without it.
8. Avoid Giving False Promises or Expectations
Another way to avoid a lawsuit is simply by being as honest and up-front about your products and services as possible. When you are, it greatly decreases the chances of giving customers false expectations that may lead them to sue if you unintentionally let them down. In addition, do not give false promises.
Sometimes, lawsuits are an inevitable part of running a business, but tips such as these can help you minimize the risk.
