Top 10 Steps to Decrease Business Risk and Liability
By LawyerLinx,
August 17, 2015

As an owner or operator of a business, you have likely been advised to form a corporation or LLC (limited liability corporation) to protect yourself from risks and liabilities.  While this is the most common way of limiting business risks and liability, there are a number of other steps a business owner or entrepreneur can take to reduce their expose to risks of operating a business regardless of the legal structure your business operates under.

Here are the top 10 steps you can take to decrease your risk of owning and operating a business – some of them don’t require hiring a lawyer:

  1. Use written agreements and contracts for all business dealings.
  2. Purchase insurance to limit your exposure to various risks.
  3. Prepare and follow an employee handbook.
  4. Have a clear social media policy.
  5. Set clear policies on who can bind the business to contracts, debts and obligations.
  6. Maintain accurate documentation and records.
  7. Keep personal and business records separate.
  8. Maintain and update all passwords and login information for systems, software, social media, website and banking. Provide access to employees on an as-needed basis only.
  9. Identify risks and implement procedures to minimize them.
  10. Schedule quarterly meetings with your lawyer and accountant to review any changes in your business and proactively address any concerns.

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This article should not be relied upon as legal advice - the comments may not be applicable to you and may not be up to date. If you have any questions, you should contact a lawyer.