Negosentro.com | 6 Ways To Protect Your Business’s Legal Interests | It isn’t possible to avoid every potential legal problem your business may face. However, there are steps you can take to protect your business’s legal interests.
- Be Mindful of Your Words and Actions
Business owners and employees should avoid making public statements or conducting any type of business that could violate the law or expose the business to liability. This includes avoiding conducting business with individuals who may violate the law, avoiding making slanderous or libelous statements and not employing individuals whose illegal activities could expose the business. Additionally, it is important for business owners and employees to avoid conflicts of interest. If your business is facing criminal charges, consider contacting Las Vegas criminal defense attorneys for assistance.
- Keep Your Business and Your Personal Life Separate
Businesses that are operated as sole proprietorships expose the owner’s personal assets to liability should the company be sued. There are multiple ways to mitigate this potential risk. One is to transfer ownership of the business to a trust, which is a legal entity that can own property and file taxes. By placing the business in a trust, most personal assets are protected, because usually only the assets placed in the trust can be attached to a lawsuit against the trust.
Another option is to operate the business as a corporation. Incorporating comes with additional rules and regulations, but protects your personal assets from the liabilities incurred by the business.
- Seek Legal Assistance
Even businesses that are not doing anything illegal will usually need legal services at some point. It is a good idea to seek legal counsel and have them available before an issue occurs. If your business operates in multiple geographic regions, it is a good idea to have an attorney who is familiar with the specific rules and regulations in each area you operate in. You may also want to seek specialized legal help, such as a tax attorney.
- Purchase Insurance
Some types of insurance, such as automobile insurance, malpractice insurance or errors and omissions insurance may be required by law. Others, such as general liability insurance, can be a good idea to mitigate the risk of lawsuits from incidents such as slip and fall accidents. Depending on the nature of your business, you may also need product liability insurance, workers’ compensation insurance, property insurance, business insurance, business interruption coverage, and others. An insurance professional can help you determine what types of insurance your business needs.
- Protect Your Data
Most businesses have sensitive data, such as customer payment information, stored on their computer systems. Failing to protect this data can expose your business to lawsuits from affected customers. Additionally, if your network goes down due to a hacker, virus or another issue, you may be unable to fulfill contracts or meet other obligations.
You should protect your data by performing regular backups, using antivirus and malware programs, requiring secure passwords and taking other security precautions. Additionally, your data needs to be protected from fires or natural disasters by having an off-site backup or storing information in the cloud.
- Use Non-Disclosure Agreements
Any employees or representatives of other organizations that you need to share trade secrets, strategies or other confidential information with should be required to sign a non-disclosure agreement. An NDA is a legally binding contract that prevents parties from sharing information they are instructed not to share in the agreement.
This makes it possible for you to partner with other businesses to work on joint projects without worrying about the other company stealing your confidential information and using it for profit or to harm your company. It also prevents former employees from sharing secrets with new employers.
Most businesses will face a variety of legal issues over the course of their operation. It is important to protect your business against potential financial liabilities or criminal prosecution. These six steps can help you protect your business’s legal interests.