Tips on Protecting Your Business From Litigation

AdobeStock_273133653-300x200California business owners face many different types of litigation. It is important to mitigate the risk of liability by consulting with a California business litigation attorney before your business is even established. The experienced California business litigation lawyers at Structure Law have helped entrepreneurs in all types of industries protect their companies from preventable losses. What follows are some of our tips to protect your business from litigation.

Have a business litigation attorney in California draft an operating agreement.

An operating agreement is not required to form a business in California. As a result, some business owners make the mistake of starting business operations without them. Without an operating agreement, the business is exposed to litigation and liability. An experienced business lawyer can draft an agreement that will reduce the likelihood of future liability. According to the Small Business Administration, an operating agreement sets the rules that guide a company’s decisions. Having an operating agreement can set decision-making processes that reduce the likelihood your company will face litigation. This agreement can even reduce the risk of future costly conflicts between owners of the company.

Get a California business litigator’s advice about your company’s policies and procedures.

Once you have formed a business and set an operating agreement, it is important to have policies and procedures in place to ensure that your risk mitigation strategies are actually used. A business attorney can ensure that the risk mitigation measures in your operating agreement are implemented through clear policies and procedures for all employees. Having a clear set of guidelines makes it less likely that an employee will expose your business to liability – so long as these guidelines are enforced.

Have an employee or department monitoring your business practices for potential areas of liability.

Written policies and procedures are only effective if employees actually adhere to them. For this reason, it is important for business owners to put compliance measures in place. Larger companies might have an entire HR department that ensures all employees comply with policies and procedures on a daily basis. In smaller companies, there might be a single person assigned to this task, or each employee might report to a supervisor who monitors their compliance. The attorneys at Structure Law can help create a compliance system that works for your unique business. The important thing is to be sure that there is some accountability for all employees to ensure daily compliance with your company’s policies and procedures.

Check with your lawyer regularly to ensure that your policies and procedures are compliant with current legal regulations.

Every year, the state legislature passes new laws that affect business owners in all kinds of ways. Certain industries face rapidly-changing regulations. Employment law changes annually, and employers are obligated to follow whatever current regulations apply in their geographic area. It is important for all business owners to seek ongoing legal advice about the changing legal regulations that apply to all aspects of their business operations.

Our Experienced California Business Litigation Lawyers Can Protect Your Business From Liability

The experienced California business litigation lawyers at Structure Law Group help mitigate risk at every stage of business operations. You can call our business attorneys at (408) 441-7500 in Silicon Valley, (310) 818-7500 in Los Angeles, or (512) 881-7500 in Austin, Texas, or contact us online