The last thing that any business owner in California needs to be dealing with is costly litigation. Lawsuits can be incredibly disruptive and costly, jeopardizing the time and money of numerous companies.

Business owners need to understand that it is their responsibility to ensure that everything with their company runs smoothly and there are no legal issues. When you own a business, here are some of the things you can do to help possibly reduce your risk of being subject to a lawsuit:

Put Everything in Writing

Make sure that all agreements you are creating are signed and filed properly. Simply putting an agreement in writing often clarifies the rights and duties of each party so there is little room for disagreement. The average business is going to have multiple types of agreements to be concerned with, from employment contracts to sales agreements. When negotiating an agreement, try to keep notes you take during phone conversations.

Reputation Management

All businesses need to be cautious about doing business with possibly unscrupulous vendors. It is also recommended that business owners avoid making public pronouncements about their companies or conduction any kind of business that could be considered questionable. Similarly, employers should also stick to their word and follow through on their promises.

Best Employment Practices

An employer is going to need to make certain that their workplace complies with all state and federal laws, especially concerning harassment and discrimination. Certain businesses could benefit from employment practices liability insurance. It is important to have a human resources department.

Separate Personal from Business

While many businesses begin as sole proprietorships, this is always risky for a business owner because they could find themselves being personally liable in cases involving their business. Business owners can protect their personal assets by making their businesses limited liability companies (LLCs) or corporations.

Know Your Insurance Needs

No business owner can operate without proper insurance, but you need to know which kinds of insurance will best suit your individual needs. Employers have numerous options, ranging from general liability insurance to commercial automobile insurance to professional liability insurance. Umbrella insurance policies can also be valuable in some cases.

Hire a Lawyer

Chances are likely that you are going to encounter a legal issue at some point in your business life, and you will want to have somebody knowledgeable you can speak with in these situations. Business owners will want to find themselves a business attorney who really understands how to effectively represent companies in all kinds of legal actions.

Contact Our Mountain View Startup & Small Business Attorney

Are you a business owner who is currently facing a lawsuit or thinks they could be at risk of a lawsuit? You will want to be sure that you have Kalia Law P.C. on your side because we represent small business owners all over California.

Our firm works very closely with business owners to really understand their individual needs and then works to help them get the answers to their problems. Call (650) 701-7617 or contact us online to take advantage of a free consultation with our Mountain View startup & small business attorney.

- Claire Kalia


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