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Every entrepreneur needs to educate themselves on the legal side of business. Failing to put in place certain measures could result in fines from authorities, a lack of other measures could lay you open to lawsuits. Here are just five ways to protect your business legally.
Choose the right business structure
Your business structure is something you should sort out when first establishing your business. Many businesses start as a sole proprietorship – this can allow you a lot of flexibility and fewer taxes, but it does mean that the owner of the company is liable for any company debts. Switching to a limited company could prevent you from being personally liable for company debts, as well as creating a more professional image. Sites like yourcompanyformations.co.uk can allow you to change your business structure cheaply. There are other options worth exploring too such as partnerships and corporations.
Get contracts professionally written up
It’s worth having written contracts in place when hiring new staff or taking on certain clients. By putting terms and conditions in writing, the people you choose to work with must legally abide by their part of the deal. This could prevent staff stealing resources and setting up their own business or clients suing you for a service you said you wouldn’t provide. It’s best to get contracts professionally written up so that none of the wording can misconstrued and sued against you. You may even be able to hire someone on fiverr.com to do it cheaply.
Consider a trademark
Registering a trademark for your business can also be beneficial. A trademark can prevent people from stealing your company’s name and brand for their own purposes, or alternatively suing you unfairly for stealing theirs. You can register a trademark at sites like trademarkeagle.co.uk.
Insure your business
Insurance may not prevent a lawsuit, but it could help pay for lawsuit costs in many cases. Every company owner that hires employees needs to take out employer’s liability insurance by law. This can cover the cost of any legal claim made by an employee that is sick or injured as a result of work. Other insurance schemes can be handy to have to as a business. For example, public liability insurance can help you cover compensation costs of injured customers, whilst product liability can cover the cost of faulty products. You may be able to find a special business insurance package that includes all these schemes.
Have a legal advisor on call
There are likely to be other legal problems that your business encounters. Having a legal advisor that you can call upon for advice is handy for such situations. A legal advisor may even be able to help you make claims against other companies if required. There may also be times when you want specific legal advice such as implementing health and safety measures around your business premises. A health and safety advisor may be able to do an audit of your company and give advice on how to fix up any weaknesses.