Small business owners work hard to get their businesses up and running. They continue with the hard work to strive to make their small business a success. The last thing a small business owner wants or needs are legal problems which can jeopardize the integrity of their company. That is why it is imperative to protect your small business before problems arise. Being proactive is key.
Hire a skilled attorney
Small business owners should acquire some basic knowledge about business law so he or she is informed and aware of important legal matters related to small business. However, running a small business takes an incredible amount of time, and the truth is no one can be an expert in every single area of business. So, it is best to leave the legalities to an expert, such as an attorney who is highly skilled in small business law and enjoys working with small business owners.
Obtain liability insurance
Insuring a small business and its employees under an umbrella insurance is one of the best ways to protect the business. A small business is often strapped for cash at the inception of the business, but insuring the company right from start is essential. Not only will it protect the business, but it will also protect the business owner’s personal property and assets.
Keep personal and business accounts separate
Knowing the accounting and financials of the business are key to its success. Finances can become very messy and complicated when the accounts are intermingled. Keeping separate accounts not only makes the finances more manageable, it also makes tax time much easier to handle. The U.S. Small Business Administration offers a participant guide in regards to record keeping for small businesses, which goes into great detail about legal compliance through accurate record keeping.
This article was written by Michelle M. Guilbeau for CBS Small Business Pulse.