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Talk to your attorney to prevent personal liability in business

On Behalf of | Apr 25, 2019 | Business Law

Running a business is a great way to boost your income and provide a service to those around you. In Florence, there are always lots of people, including tourists, to try out your products.

Any time you start a business, it’s important to make sure you take steps to avoid personal liability. If someone falls on your property, you want the business to be responsible, not you. If someone gets hurt by a product, you want your business to be affected, not your personal finances.

To help with this, it’s vital not to register as a sole proprietor. When you’re a sole proprietor, your business is not a separate entity. If your business is sued, you are sued. You could be ruined by a single lawsuit.

It’s better to incorporate your business. Doing this separates your company’s finances from your own, making it much more difficult, if not impossible, for someone to sue your company and impact your own personal finances.

On top of registering your small business the right way, you’ll want to insure your business and have liability insurance. This insurance will help protect your business if you are involved in a lawsuit so that someone’s problem with your business doesn’t end up ruining your business’s success.

Your attorney can help you choose the right kind of business structure to register as so that you are well-protected against lawsuits. By preparing in advance, you’ll lower the chance of seeing any financial impact if you are sued by a client or customer due to injuries or other unfortunate circumstances.