Small business owners usually work around the clock, building something tangible out of an idea, and performing an intricate juggling act, hoping to keep all their balls in the air.
One area that should never be left to chance is protecting the business from possible claims and lawsuits. The general rule of thumb is to get, and maintain an effective asset protection plan in the early stages of the business.
Unfortunately, in our litigious society, there is a high probability that a small business owner will get sued at least once for many reasons including:
-Contract Disputes (Employee and Client)
-Negligence or Intentional Harm
-Violating Government Regulations
-Labor Law Violations
The best strategy to protect your business is to be proactive, and the best line of defense is a strong asset protection plan. Here are five tips to follow:
1.Don’t DIY your asset protection plan. Hire a reputable attorney.
2.Avoid sole proprietorships. Use a business structure, such as an LLC, that separates the individual from the business.
3.Get insured. More is better. Liability coverage is a must, and an umbrella policy is always a good addition.
4.Set up a retirement plan like a 401k.
5.Be mindful to have a separate bank account for the business and not to have the business pay for your personal expenses.
To learn more about protecting your business, view our information sheet here.
Jacob Stein is one of the nation’s highest-regarded Asset Protection attorneys. For more information on how he can help you, contact us today.