No one wants to think about the “worst case scenario” in the heady days of a new business venture. But, there are basic legal issues you should address to avoid complications down the road. Taking the time to plan up front can save you headaches and hours of problem solving later. Here is my list of common legal pitfalls to avoid as a start-up.
Lately, more and more clients ask what they can do to protect their small businesses. Most understand that corporations and limited liability companies (LLCs) may shield them from personal liability for the debts and other obligations of the business; however, they seem to be unclear as to how the law works in the opposition direction. How can an owner protect their small business from claims for their own personal liabilities?