When you own a business, there is always a threat of a lawsuit. Though you should do everything the best that you can, you can’t always please everyone. However, it is important that you protect your assets just in case.
Here are some tips to do that.
Make sure that you have your business set up correctly. You should talk to a professional to make sure that your business is set up correctly. If you are a sole proprietor, you could lose a lot in a lawsuit so you may want to look into a S corporation or a limited liability company (LLC).
Protect yourself right from the start. Too many people think that it can’t happen to them. When it does, they scramble to protect their assets. However, by then it might be too late. For this reason, you need to start protecting your assets right away!
Use legal contracts. One of the best ways to avoid lawsuits is to run your business by the books. Use legal contracts for everything that you do. Put things in writing (and not just in emails). The more professional your business looks, the better off you will be.
Get rid of assets that you don’t need. If you are being sued, they can’t touch things that you don’t own. For this reason, many business owners transfer their extra money into irrevocable trusts so that their family members can use it instead.
Unfortunately, lawsuits happen and small business owners can lose everything! They need to protect their assets right from the start. By the time a lawsuit comes around, it is too late! You should start by setting up your business correctly and always use legal contracts. Then, if you have extra money, gift it to others so that you won’t lose it.
Contact us to help you protect your assets.