Staring a new business can be one of the most exciting times of an entrepreneur’s life. However, along with the excitement comes uncertainty, as a businessperson contemplates the financial risk that he or she faces if a business does not succeed. Those in Georgia who are establishing a new organization may want to understand how to protect themselves as much as possible from unnecessary business litigation.
First, it may be important to evaluate the various structures available for new business formation. The best option for limiting personal liability could differ depending upon the number of owners involved. Second, most entrepreneurs select an appropriate insurance plan to protect themselves and/or their employees against risks that are considered especially damaging.
Third, keeping accurate records and putting certain controls in place can reduce financial loss via business litigation. These controls could be something such as limiting the number of people who are authorized to make certain financial transactions. Finally, identifying poor credit risks and implementing payment standards can also be important.
The considerations above are only a few of the many ways that new business owners in Georgia may want to consider. While some choose to pursue a start-up without legal representation, most who establish new ventures seek the professional consultation of an attorney. Attorneys with practices that focus on business formation and business litigation can be the best place for a new proprietor to seek guidance. The ability to limit liability and maximize a start-up business’s profits could mean the difference between success and failure for a new enterprise.
Source: smallbusiness.chron.com, “8 Steps Every Entrepreneur Can Take to Reduce Business Risk and Liability“, Bert Markgraf, Accessed on Aug 4, 2016