As a business owner, you have the right to choose among various structures for operating your company. The simplest one for sure is a sole proprietorship, but certainly, one of the most popular ones is LLC or limited liability company.
What makes it so alluring and inviting to so many entrepreneurs? The main reason why a lot of people opt for it is that it mixes the flexibility of a partnership with the asset protection of a corporation.
However, just because it offers great protection, it doesn’t mean that you shouldn’t focus on protecting yourself from different unpleasant factors that could potentially harm your business. If you want to know what you should do to prevent these occurrences, then take a look at my tips below!
All Contracts In Writing
This step is frequently overlooked (for unknown reasons) but at times, it can be a true lifesaver when it comes to doing business. Namely, precisely something like this can help you solve numerous disputes and clarify certain tasks and rights of both parties (in case you’re God forbid sued).
But how will you know which sort of agreement you need? Well, if you want to receive good advice from someone trustworthy, then I suggest having a seasoned lawyer on your team who is going to tell you exactly what you need and will also remind you of all the relevant details for every single business transaction.
For instance, he or she will most likely advise you to record each product or service you offer, the delivery date, the price, and many other things. Perceive this as record keeping in case something goes wrong.
Consider Workers’ Compensation Insurance
The reality is, that no employer wants to deal with any illnesses and injuries that are related to work, however, the future is unpredictable and oftentimes, you simply cannot prevent some things.
That's precisely one of the main reasons why so many employers in Missouri are obligated to have workers' compensation insurance. It's not only beneficial for the employee who was injured in any way but also to protect a business owner.
The insurance generally covers a lot of things, such as lost wages, rehabilitation services, and many others, hence it's always advisable to obtain one. But before you opt for one, I think that it would be great if you first checked the Missouri workers’ comp quote to see which one offers the best possible conditions. Who knows, maybe you’ll be able to come across some awesome discounts.
Attorney, Attorney, Attorney
Previously, when I was discussing contracts, I told you how essential it is to have an advocate in these instances. But I would like to remind you that having a solicitor by your side is generally always recommendable and this doesn't refer to LLC business owners only, but to every type of employer.
Who knows, what if something negative happens, and you do not have anyone to consult to see how to overcome a particular obstacle? Or if by any chance, someone sues your firm, then you need to contact somebody who is going to tell you what steps to take to prevent any further complications. Now, since you are running an LLC, then I suggest hiring a legal expert who is familiar with all the rules and regulations when it comes to this. But how will you be able to tell which one is suitable for you?
Well, for starters, you can either consult other businessmen to see if there’s someone they can recommend (particularly the ones who are LLC owners), or you can rely on the internet to see whether you’ll be able to find any positive reviews about certain lawyers and then do the cold calling.
Don’t Forget Your Personal Assets
A vast majority of entrepreneurs at some point decide to set up a family trust and transfer all their personal assets to secure themselves from potential commercial risk, which is generally a great idea. However, what's worth mentioning is the fact that lender demand businessmen and their trusts to guarantee all the company borrowings, and to also grant security over their assets, which can actually undo the protection the trust was determined to offer in the first place.
Therefore, I suggest avoiding including your trust in your affairs that are related to your firm whenever you can. But how can you do it? You can either push back and ask your bank to justify its position or ask for a second competitive loan but do it from a different bank. That's an even better idea if you ask me.
Now, if by any chance you put your family house into a trust, then you need to ensure that you have completely “forgiven” its worth. On the flip side, if you haven’t done this already, the trust will owe you a debt to the value of the house.
Furthermore, that debt is actually an asset that can be sought by a creditor to meet all your personal business liabilities. The worst-case scenario (which doesn’t happen too often) is that you’ll be obligated to sell the family house in order to meet your personal liabilities.
In a nutshell, the solution to all of this is really not as complex as it may appear to be. You just have to finish some paperwork to forgive the debt.
Prioritize Privacy And Cybersecurity
Viruses, malware, and many other online threats are something that most of us deal with on a daily basis, however, you as a business owner have a lot more responsibilities towards yourself, your company, and, after all, your workers.
Consequently, if you want to avoid any threats that are continuously lurking on the internet then you should do the following:
• Invest some money in high-quality cyber insurance
• Back up all your files, especially the most important ones
• Restrict account access
• Maintain customer, worker, and business confidentiality
• Always update your security software
Running AN LLC In Missouri? Here's How To Protect Your Rights
Whether you like to admit it or not, no one is ever going to protect your rights better than yourself. Therefore, if you want to make sure they are never jeopardized, then don’t forget to implement all these tips above.
