How to protect your small business from legal challenges

By Henry Brown

If you’re going to protect your business moving forward, one of the things you really need to do is protect it from any legal challenges it might face in the future. When you’re not careful, all kinds of things can go wrong and you don’t want to take your business into a legal oblivion.

These things do happen though and it usually comes down to business owners not being careful and not managing risks the way they should. We’re going to talk today about some of the things you can do to protect your business from legal challenges better moving forward. Find out more about that below.

Take legal advice about any and all big decisions

If you want to avoid landing yourself in legal hot water, you should make sure that before you make any big decisions regarding anything at all, you first of all consult your legal team. Having a lawyer you can turn to and discuss things with is vital. Getting their professional input and advice makes a big difference and can often prevent you from doing something that you might end up regretting later.

Keep personal and business assets separate

If there ever are any legal issues that your business faces, you want to make sure that your personal assets are not compromised. That’s why it’s so important to structure your business in a way that ensures your personal assets and the assets belonging to the business are not mixed up and are kept separate at all times. Get legal advice on this if you’re not sure about how to make that happen if it hasn’t happened already.

Respect your employees’ rights

It’s also very important that you pay attention to the workplace rights of your employees. When you’re running a business, your employees have rights regarding how they’re paid and how they’re treated, among many other things. If you treat them badly and ignore those rights, you’ll end up facing a tribunal of some sort. Your employees can and will sue you if they feel their rights are not being observed and respected.

Always use written agreements

When you’re looking to do business with someone or another company, any arrangements that are made should be put in writing. When you have these arrangements agreed in writing, it serves as a form of clarity for everyone. People are then on the same page and you can make sure that everything you do is in line with the agreement and contract that you signed. And the other party can do the same as well. It’s good news for all involved.

Keep paperwork up to date

Keeping your paperwork properly up to date will be very important. You might have to go back and prove something at a later date or the tax authorities might want to see those records. There are lots of reasons why it pays off to have your paperwork kept up to date, and it’s definitely not something that you should afford to ignore. So if your paperwork isn’t organized right now, it’s time to change that once and for all.

Hire people with the right qualifications and required licenses

It’s important that you try to only hire people who have the right skills and qualifications required to do the job you’re hiring them to do. You don’t want to hire people and find out later that they don’t have the qualifications or professional licenses that you thought they had. Don’t just take a person’s word for it; check and double check their credentials. If you’re hiring a truck driver, for example, you want to know that they’re licensed and reliable; that way you’ll be less likely to be dealing with a truck crash lawyer and serious injuries later on.

Understand the ins and outs of intellectual property

The last thing you want is to infringe on someone else’s copyright and intellectual property because that’s a shortcut towards getting sued. If you know that the IP belongs to someone else, that means you can’t use it without their permission being granted first. It pays off to understand more of the details about intellectual property and how the laws surrounding it are used and enforced.

It’s in your best interests to make sure that you’re protecting your business and preventing legal challenges from arising. If you take care and make the most of the simple advice outlined above, you shouldn’t have any real difficulty avoiding unnecessary legal challenges against you.


Henry Brown is an online marketing executive. When he isn’t talking shop, he’s roaming the streets of London, uncovering the extra-ordinary in the ordinary.

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