When you own a business , especially a successful one , lawsuits are sometimes inevitable . small business are popular target , because people assume , most will settle than go thru with hassle and lawyer fees .
If you haven’t been sued at some point means that you haven’t made that much money . Its pretty unavoidable in a successful business life span .
Obvious mistake small business make is not having a corporate structure. being llc or S- Corp will minimize the chances of any lawsuits impacting the individual.You don’t want the liability to pass to you personally .
One area can be difficult dealing with employees. Not having a culture of fairness and not setting clear rules can cause problems if employees feel they aren’t being treated well or compensated properly for their work .
Huge way to avoid lawsuits get a employee agreements in writing . Clearly lay out the rights of the employees and make sure get an arbitration clause , having that will keep you out of the court