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
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.
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.