Business owners must delicately balance their personal and business assets. There is a constant mindset of protecting one’s family from business risk, and also protecting one’s business from other outside threats. If you are a business owner, here are some tips for how you can protect your family and your business from legal risk.
Tips for Protecting Your Family and Business from Legal Risk
Here are some things you can do as a business owner to protect your personal assets and family from legal risk:
· Choose the right entity for your business – If you want to protect your personal assets from business risk, you must choose the correct entity for your business. It is often advised to use an entity like a corporation or a limited liability company (LLC) in order to protect your personal assets if your business were to be sued.
· Keep your business and personal assets separate – Have a separate checking/savings account and checks for your business assets and your personal assets. Maintain all documentation for your business as meticulous as possible to maintain annual maintenance and compliance with applicable rules or guidelines.
· Maintain proof of ethical business ownership – Should a creditor or other party attempt to attack your assets, you want to be able to show that you are a model, ethical business owner. Maintain reliable records of your business dealings, communication with customers or vendors, and any warnings or information you provide to customers about your business or services.
· Maintain proper insurance – Insurance is an essential part of protecting your family and your business. Make sure that you have the right insurance policy for your business. Shop around for insurance that offers coverage for your type of business. Have an annual review with an agent who can offer options based on your needs.
· Hire a competent attorney – In order to complete the recommendations above and maintain your business, one of the best things that you can do is hire a qualified business attorney. He or she can advise you on the best way to manage your business and finances in order to keep your assets safe.