How can you protect your business from getting sued

On Behalf of | Feb 14, 2020 | Business Law

Setting up a business here in Georgia is relatively easy. Growing it into a successful one is harder to accomplish though. If you have a thriving company, then you likely don’t want to do anything to jeopardize what you’ve accomplished. There are some basic steps that you should take to best protect your business.

One thing that you’ll want to do is carefully choose the type of formation for your business.

While it may be easier for you to operate as a sole proprietorship, there are some downsides to doing so. Plaintiffs are prohibited from coming after your assets if you own a limited liability company (LLC). If your company is a sole proprietorship then anyone who files suit against it may be able to stake a claim to your bank accounts, home or any other valuable assets that you have.

You should purchase liability insurance no matter what type of business formation you choose. While it may seem like an unnecessary expense, all it takes is one lawsuit where a judge enters in a judgment against your company for it to make sense why you need to have it. Liability insurance can protect your business from going bankrupt.

Another thing that you should do is act both proactively and responsibly. If you store sensitive information on your computer, then you’ll want to be cautious about who accesses it. It can be helpful for you to consult with an information technology professional to make sure that your data is as protected as it can be.

It’s also important for you to take time in working through problems that may arise as you run your business. You should get other experienced professionals involved if you don’t know what to do. This can help you avoid making costly mistakes.

You should also avoid speaking poorly about a competitor as this can backfire on you.

If you’re planning to set up a company here in Augusta and you’re not exactly sure of the corporate structure that is most ideal, then a lawyer can help. Your attorney can also aid you if you’re an existing Georgia business facing a lawsuit or if you’re looking to sue a vendor, contractor or anyone else yourself. Litigation can be quite costly. This is why it’s important that whoever you decide to work with closely adheres to your bottom line.