At Pence Law Firm, P.C., we work with businesses all day. We know the strengths that help them thrive and the weaknesses that make them legally vulnerable. Whether you are running a huge franchise, a small business, a tech start-up, a lemonade stand, or anything in between, there are some steps which you can take to help set yourself up for success in the future. Here are 6 ways to help protect your business from a lawsuit:
You will notice a running theme in our tips: Documentation. Documentation is do or die in every aspect of your business. Make sure you record things as they happen and save everything that is being signed or given out. Nothing will protect you more in the long run than plain and simple documentation.
Review New Contracts with an Attorney
Small businesses often do business on a handshake, which does not end well. Get everything in writing so it is abundantly clear to all parties what is going on. It protects both sides! Work with a Tulsa business attorney to make sure your contract language is black and white. This should help you clear up any misunderstandings, up front and down the line.
When you bring on a new partner, memorialize it in writing. Just like hiring a new employee, make sure to clearly outline what your expectations are for them and what their expectations are for you. This is not just about protecting your business. It sets you up for success by starting everyone on the same page and clearly communicating roles and responsibilities.
Keep an Operating Agreement
Your Operating Agreement is basically your manual outlining your plans and procedures for the business. In your Operating Agreement, you need to have a plan in place for what happens if a partnership breaks up. If you have been working closely together, things can get messy just like a divorce. You should include provisions for what the policy is for your employees when they quit as well.
Keep a Private File
If documentation is key, so is keeping your documents safe and accessible. Keep anything important and related to your employees safe in a confidential file you have access to. This is the business version of your diary – it is all yours, so keep it safe.
Ask For Help!
Despite their best efforts, bad lawsuits happen to good businesses. If you need help with your business – whether it is information, operation, or a full-blown lawsuit – contact Pence Law Firm, P.C. today! We offer customized, professional, and powerful representation.