5 ways to protect your business

By ANNA FREEMAN GREER

Get Legal Advice

If you are unsure about a contract you are getting ready to sign or how to set up a legal entity, hire an attorney. A good attorney can advise you on the proper steps to take, saving you time and money in the long run.

Let your attorney help you with forming your team, deciding what legal entity would be best for your business, drafting an operating agreement, reviewing and drafting contracts, and making sure the proper intellectual property protections are in place. Delegate the legal piece to someone that does this everyday so that you can focus on the other parts of your business and have peace of mind.

Before starting a new business, meet with several attorneys. Interview them and hire someone you feel comfortable working with moving forward. Choose an attorney that is licensed in your State and practices in the area of business law. Your lawyer will not only help you set up your business but will also serve as counsel should an issue arise with your new venture.

2. Setup the Proper Legal Entity

Many businesses operate as a sole proprietorship. Legally, this is fine. However, if your business is sued, your personal assets are exposed. Speak with your attorney and CPA to determine the best legal entity so that your personal assets will be protected in the event of a lawsuit against your business.

3. Insure Yourself and Your Business

Most service providers are required to obtain malpractice or errors and omissions insurance to insure against any alleged mistakes made in their business. All businesses should also consider obtaining liability insurance to cover any incidents at a place of business. For example, a slip and fall.

A good attorney will also build “insurance” into your legal contracts and agreements. Again, using your attorney on the front end to draft good contracts and discuss possible legal coverages to be included in written agreements, can save you time and money.

4.Put Everything in Writing

Everything should be in writing – always. Before entering into any new relationship with a business partner, vendor or client, clearly state the terms of the relationship in writing. Before signing any contract, make sure you easily understand what it says. And, if not, have an attorney review and revise it. It’s easy to get caught up in the excitement of starting something new and skip over this very important step. If it’s not clear on the front end, it certainly won’t be clear when you are at odds with the other person or business involved.

5. Protect Your Intellectual Property

If your name, logo or product are the bread and butter of your business, consider protecting it with a trademark, patent or copyright. Discuss this with an attorney experienced in intellectual property law before starting your business or launching a product.

As an entrepreneur or business owner, control the things you can control and the road to success will be a much more pleasant one to travel.

Anna Freeman Greer describes herself as “entrepreneur first, attorney second.” After starting and building her own law practice in 2009, she quickly realized her passion for helping other entrepreneurs and small business owners launch and grow their respective businesses. Visit her at www.annafreemangreer.com.