Asset Protection: Keeping Your Company Safe from Litigation

Asset ProtectionYou live in a litigious society so you should do your best to protect yourself from lawsuits. After all, you don’t want your life’s work to just go to some frivolous lawsuit.

Choice of Entity

Sole proprietorships and general partnerships are risky entities to use for business. If you are the sole proprietor, your personal assets and business assets are considered one and the same. Should your business get involved in a lawsuit, assets unrelated to the business can be seized. The same is true if you, as the individual, are sued. For general partnerships, this risk is doubled. If your business partner gets sued, you will be found equally liable.

A better option is to register for business entities that provide a separation of business and personal assets, such as a C-type corporation, a limited liability company, or an S-type corporation. Use of any of these entities is recommended and your choice of business will determine which type is best for your needs.

More than an Ounce of Prevention

Accidents can also lead to lawsuits, even if and especially when the job is potentially hazardous. Construction businesses are among those particularly vulnerable to these types of lawsuits. If your business makes use of heavy machinery and other similar equipment, make sure they have been tested for safety. Regardless of whether your business is in Savannah or Dalton, everything you own should be in top shape. Get pull testing done on any machinery that involves lifting, check for wear on any part of your equipment, and make sure to have them professionally checked as part of routine maintenance, says an expert from Consolidated Rigging & Lifting Products, Inc.

In addition, consider getting commercial insurance for yourself and workers’ compensation for your employees. These can help offset any damage you get from lawsuits. Make sure to read the fine print on your policy and discuss the coverage with your service provider or your attorney.

Hire Reliable Help

Of course, all these preparations will mean little should a lawsuit come up anyway. Find an attorney who can be trusted to provide you with the best possible advice. By doing so, you protect not just your own interests but also those of your employees.