LawyersBay
Being a business owner has numerous advantages, like complete control over your time, unlimited earning potential, and the ability to choose jobs that you truly enjoy. However, there is also a great deal of accountability. What if you don’t understand the legal jargon? What precautions should you take to safeguard yourself and your company? When should you hire a lawyer and when may you do it yourself?
It may appear intimidating and overpowering. However, legal concerns must be addressed because a single blunder might put your company out of business. The good news is that, while employing a lawyer is frequently the best option, there are some things you may do without paying a lawyer. Here are three of them.
Related: 7 Tips Before Hiring a Business Attorney
Contents
1. Make a connection between your LLC and your business bank account.
As an attorney in New York City who works with small business owners, I see this error all the time. You go to the hassle of forming an LLC and even establishing a business bank account. However, you created the bank account using your social security number instead of your LLC’s employee identification number (EIN). The LLC is intended to insulate your personal assets from your business’s actions. It can only do so if your LLC’s EIN, not your personal social security number, is linked to your company bank account. If you don’t already have an EIN, go to www.irs.gov to get one.
2. Buy Insurance for Your Business
Insurance won’t cure all of your problems, but it can help you keep your out-of-pocket costs down if you have legal troubles. Even if you win, lawsuits are costly. Businesses require commercial insurance to assist cover the costs of property damage and liability claims. You may have to pay for damages and legal claims against your firm out of pocket if you don’t have business insurance. Depending on the circumstances, this could be a financially ruinous situation. Furthermore, insurance provides peace of mind, which is invaluable while running a business. General liability, professional liability, and data breach insurance are some of the types of insurance that business owners may require. Consult a broker to learn more about your alternatives.
Related: Why Is Hiring a Business Lawyer a Necessary Expense?
3. Make legal notices available on your website.
Today, almost every company has a website. Are you at risk of being sued because of your website? “Yes!” says the answer. Even if you don’t insult somebody or post someone else’s work on your website, what’s on it — or what’s not on it — could get you in trouble. A privacy policy, disclaimer, and terms and conditions, at the very least, should be put on your website where viewers can easily read and understand them.
The privacy policy explains how you collect personal information from visitors (such as email addresses and phone numbers) and what you do with it (using it for marketing or fulfilling orders). If you do gather personal information from people, you must comply with the law since preserving people’s privacy is a major government concern. A disclaimer is a legal notice that you publish on your website to restrict your liability for the results of your site’s use. Is there any advise or instructional content on your website? If someone relies on that information and has a negative outcome, you may be exposed to potential claims. If this happens, a disclaimer might help you limit your obligation. Finally, a terms and conditions notice allows you to provide guidelines for users to your website. It’s also a strategy to safeguard your company by limiting your liability in the event that a consumer takes you to court. These three notices are frequently placed at the bottom of your page, where users can read them by clicking on them.
If hiring a lawyer to draft them for you is out of your budget, there are templates available online that are an excellent start. You can then have them examined by an attorney licensed in your state for a lower charge than if they prepared them from beginning for you.