6 smart ways to legally protect your small business
When starting and running a small business, there are many things to consider. One of the most important but often overlooked is legal protection.
Putting the right legal safeguards in place can save you time, money, and headaches down the road. In this post, we’ll share some smart ways to protect your small business legally.
1. Use contracts
As a small business owner, you likely wear many hats — you could be the salesperson, customer service representative, bookkeeper, and CEO all rolled into one. While you might be a master of multitasking, legal work is one important task you should never try to do alone.
Contracts play a vital role in every small business, from negotiation to signing. Contracts lay out the expectations, responsibilities, and duties of all parties involved, whether you’re hiring an employee, leasing office space, or partnering with another company.
While you might be tempted to save a few bucks by using a contract template you found online, it’s always best to find Commercial lawyers from LegalVision UK to review any legal documents before you sign them.
2. Hire an attorney
No business is too small to seek legal counsel. If you don’t have the budget to hire an attorney full-time, look for firms that offer services on an as-needed basis, or tap into pro bono resources in your community.
Your lawyer can help you with various legal issues, from choosing the right business structure to protecting your intellectual property. They can also help you navigate the often-complex world of business regulations.
Don’t wait until you have a legal problem to contact an attorney. The best time to seek legal advice is before you start your business. This way, you can avoid potential legal problems down the road.
3. Buy business insurance
As a small business owner, you are responsible for ensuring the safety and well-being of your employees, customers, and property. One way to do this is to purchase business insurance.
Business insurance can protect you from various risks, including property damage, liability, and even employee injury. Many different business insurance policies are available, so it’s important to work with an experienced agent to determine which coverage is right for your business.
Proper insurance coverage is essential for any business, but it’s especially important for small businesses. First, small businesses typically have fewer resources than larger businesses, so they can’t afford to self-insure against potential risks. Second, small businesses are more likely to be sued than larger businesses.
4. Become GDPR compliant
The GDPR requires businesses to take steps to protect the personal data of EU citizens. If you do business with EU citizens, you must comply with the GDPR.
If you take these steps to protect your customers’ data, you’ll be on your way to complying with the GDPR and keeping your small business safe.
5. Legally separate yourself from the business
One of the smartest ways to protect your small business is to separate yourself from it legally. This can be done by forming a limited liability company (LLC) or a corporation. Doing so can help shield you from personal liability if your business is sued or incurs debt.
It’s important to consult with an attorney or accountant to determine which business structure is right for you. They can also help you navigate the process of setting up your new business entity.
Once you’ve legally separated yourself from your business, open a business bank account and get a business credit card to help you avoid commingling assets and help maintain a clear separation between your personal and business finances.
6. Add legal documents to your business blog
If you’re running a small business, having the proper legal documents in place to protect yourself and your company is important. Here are four essential legal documents every small business should have:
a) A non-disclosure agreement (NDA)
An NDA is a contract between you and another party, typically an employee, vendor, or potential business partner. The NDA outlines what information can and cannot be shared and sets consequences if the agreement is breached. An NDA can help protect your company’s confidential information and trade secrets.
b) An intellectual property (IP) policy
An IP policy is a document that outlines your company’s policies and procedures related to intellectual property, such as trademarks, copyrights, and patents. Having an IP policy in place can help you protect your company’s valuable intellectual property assets.
Having the proper legal documents in place is essential for any small business. Taking the time to create and implement these documents can help you protect your company and its assets.
No business is immune to legal problems, but you can take steps to minimize your risk. By understanding the common legal issues small businesses face, you can be better prepared to protect your business if a problem arises.