How Can Businesses Protect Themselves From Lawsuits?
From the start, they need to organize the business correctly to protect themselves. Usually, that means incorporating, or forming an LLC. This shields the sole practitioner, or a small business from personal liability. This creates an enforceable contract from the beginning instead of waiting until you have an issue with a contract and then have to bring in an attorney to litigate it, because you have created a poor contract. The attorneys are there to create enforceable contracts. I create forms and documents which further shield the business from liability. That can be either from the perspective of customers, or employees, because from a business standpoint, you have to make sure that you limit your liability with customers you deal with, and from employee related lawsuits.
What Are Some Important Things Someone Should Know When Buying Or Selling A Business?
You would think this would be the easiest thing, but the most common is actually a question of what exactly is being sold or bought. Sometimes it will be real estate without any assets, it might include fixtures, office equipment, furniture, and oftentimes the buyer will think that he or she is purchasing all the assets of a business and that may not necessarily be the case if the contract is not written up that way. The seller is not thinking the same way. With these agreements on the purchase and sale of businesses, future payments need to be made. If those are not spelled out in the contract, then there is most certainly going to be a dispute, and probably a lawsuit if that is left vague.
That is what the attorneys are there for, to make sure that language is not vague, and it is very precise. You will also too have to understand what the mechanisms are, and make sure this is detailed in the contract for the enforcement of the agreement. So if one side says, “They breached the agreement”, does it go to arbitration, does it go straight to court, what is the venue, all that has to be spelled out in a contract. Many times, non-lawyers do not understand that, and that is left up in the air. Many times, with companies, there is a question of the good will of the company, which is kind of an intangible asset, but it becomes very important, so you need to make sure that both parties understand if good will is coming with the company as well as part of the purchase.
Why Do Businesses Need An Experienced Business Law Attorney?
Most business owners are good at what they do with their business. But most of them are bad at law. So oftentimes, the attorney’s job is to educate the owner, because the business owner knows their business is high now, and they do not know how to navigate legal issues, which could occur either inside or outside of a courtroom. The quickest way to damage a business, especially a relatively new business, or any business, is to have a large lawsuit against the business.
A competent attorney reduces the exposure to that liability, so it is to limit the business owner’s exposure to liability. That gives a business owner a peace of mind that things are done right from the beginning. They are protected as well as they can be when they start contracting, and servicing customers.
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