Building the groundwork for a business can take years if you’re doing it little by little. Whether you’re generating leads on your off-time, or building an online storefront as you make products with your own hands, every hopeful business owner dedicates many sleepless nights in order to see their business flourish one day.
But running a business takes even more work than most people anticipate. Even if you have a smart head for business, or if you’re a natural people person, before you get your business off the ground, you’ll want to put a few safeguards in place.
As a business owner, you’ll need to protect yourself from a host of issues that could arise at any moment. Often, these issues come in the form of lawsuits, and you don’t want to be on the receiving end.
If you’re building a business from scratch, here are a few important safeguards that you need to know about.
LLC and Business Checking Accounts
While the differences between business accounts and personal checking accounts are typically associated with costs and fees, the reasoning behind having a business checking account is more of a safeguard in itself.
For example, if you’re in the beginning stages of establishing your business, you might be thinking about registering your business as an LLC (Limited Liability Company) or as a corporation. Doing so is essentially an act of separating you from your business. This simply protects you if something happens at your business or if someone attempts filing a lawsuit.
However, if you still use a personal checking account for your business, this will make it appear that you aren’t a separate entity from your business. As long as you keep all business assets and finances separate in a business checking account, only your business can be held liable in the event of an issue or lawsuit.
When a business is in its infancy, many individuals use their own personal vehicles to conduct business affairs, land jobs, or even drive to work sites. And many business owners don’t think twice about their individual insurance policies.
The truth is, if you’re using your vehicle for work-related purposes, you need to have some form of small business insurance. This becomes especially true if you’re operating with employees, and have a fleet of work vehicles. In this case, a form of commercial insurance is needed, and it is stipulated by law in nearly all 50 states.
Acquiring small business insurance is thankfully a fairly simple process. If you’re worried about being held liable in the event of an accident in your vehicle or a company vehicle, simply obtain a new auto insurance quote and decide on a policy best suited for your small business needs.
Hire an Attorney
While you might think that hiring an attorney is something reserved only for legal issues whenever they arise, when you own a business it’s a good rule of thumb to have a personal business attorney for many reasons.
A business attorney offers protection for your small business and can help guide you in terms of making sound business decisions, and this becomes extremely helpful once you begin to expand your enterprise.
Attorneys are also very helpful for a new business owner, as you might have a lot of questions regarding the legality of your practices, and what safeguards to have in place just in case legal situations arise. Business attorneys can also advise you in terms of investments, accounting practices, and what you need to do in order to legally file taxes every year.
Starting a business can be an overwhelming experience. But if you have goals in mind, striving to reach these goals then becomes a continuous journey. With proper safeguards set in place prior to expansion of your business, you’ll be setting your security in place, just in case anything arises along the way.
Remember, owning a business is a dream that many never realize, so ensuring that you’re protected while you establish yourself becomes a wise decision.