Protect Your Assets and Businesses
Owning a business can be very challenging. Whether you are strategizing for new clients or making new work processes, there are so things that need time and attention. One of the last things you would want to worry about is the threat of a lawsuit. It’s one of those things that can easily swamp your finances out and take most of your energy. It can easily turn your dream into a living nightmare. Being protected from frivolous litigation cases is one thing you need to consider a priority.
Choose Your Partners Well
While there is truth in the benefit of working with a partner, you still need to be careful who you work with. Work can seem easier working with someone. But, if you are not sure about who you partner with, you take a lot of risks with your money. Investigate your partner’s assets and liabilities well before taking them under any legal partnerships. Creditors can easily attach any assets that are jointly held. You might end up being responsible and paying for their debts with your own money.
Avoid Co-Signing Bank Accounts
Apart from being careful with legal partnerships, it is very important that you do not take on co-signees to your personal bank account. Just like legal partnerships, sharing your bank account can open you to the risk of sharing debts with your co-signee. They can easily use what you worked hard to earn for their own selfish gains. Likewise, Creditors will have legal rights to using your money to pay for your co-signees debts.
Work within Legal Protocols
If you own a business, make sure that you use a legally documented corporation or limited liability company to operate it. But, make it a point to respect the separation of ownerships in the corporations or partnerships that you own. Do not use your company checkbook like personal bank account. If you ignore financial and legal protocols, the courts and tax people can find reason to prosecute you.
Get Legal Second Opinions
Lastly, don’t just rely on one legal counsel. As much as possible, you need to get referrals from other legal professionals in your industry. Seek counsel from at least 3–4 legal advisors. While there may be some differing opinions on how to approach things, knowing different sides may help you get a broader picture on how you should approach any of your legal woes.
Don’t just spend time and effort all on building your assets and businesses. Make sure that you also actively protect your business and assets from lawsuits. Don’t be caught unaware.
If need help ask Oleksiy Nesterenko.