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Keeping Your Small Business Safe From Litigation

The triumphant rush of emotions following the successful inception of a small business is rivaled by a handful of other experiences in one’s life. It is a complete manifestation of the hard work put in to accomplish a dream, and is the result of a long labor of love. With a new small business comes a new set of responsibilities and a lifestyle that might require some adjustments, however.

One such responsibility is staying on top of important legal aspects to your business, and preparing for the possibility of accidents or legal disputes that will impact your bottom line. Today we discuss important considerations that could protect your small business from litigation.

What Is Litigation?

Litigation is the process by which disputes are handled through a court system. Litigation is typically resolved either by the decision of a judge, or the settlements made between parties prior to a judge’s decision.

Running a Business Ethically

Operating a business with honest business ethics should be at the core of the company for several reasons. If doing what is right seems inherent, it does not hurt to know that it can also unsurprisingly help avoid litigation. By operating your company such that employees and customers are satisfied without having to cut corners or bend rules, you mitigate the possible scenarios that would hurt people and cause them to sue.

What You Can Prevent

Amongst the greatest advice for keeping a business safe from litigation is, once again unsurprisingly, careful prevention. There are a few key steps to take in order to ensure you are protected from litigation.

Documentation of practices is critical to avoiding litigation. Small business owners often perform a common hand-shake agreement when documentation and official records should have been kept. Accounting and recordkeeping should always be done in writing. In essence, practice good bookkeeping, and keep it all in writing.

Insurance and a trusted attorney can help you navigate aspects of your small business you may have not considered. Insurance will protect you in case of an unfortunate event. An attorney can help plan and prevent policies and scenarios that could lead to litigation, as well as help with any litigation itself, should it arise.

What You Cannot Prevent

A good lawyer is particularly helpful to avoiding litigation, as an experienced attorney will know the law and will be able to advise how certain processes or features of a small business are most safely executed. Should problems or disputes arise, a trusted attorney can also help defend you, especially if they assisted in the early formation of a small business. While you cannot completely prevent litigation, an attorney is well-equipped to ensure you mitigate and minimize the negative impact of litigation on your business.

Questions Regarding Business Litigation? Contact Our Staff Today

Developing a small business from the ground up is exciting and scary. It can be daunting to consider all the potential new challenges that may arise. Disputes and litigation are not guaranteed, but they are a common reality for many companies in operation. With enough precaution and good legal help, litigation does not have to ruin your business. For a new business owner, time is best spent working with your customers and enjoying the process. At SAC LLP, we are ready to assist you with any questions you have regarding small businesses. If you have any questions, please contact our team at (408) 716-1790 today.

Client Reviews
Mr. Cai Is a Diligent Attorney. My sister and I were defendants in a civil litigation case. We hired James Cai and his law firm, SAC Attorneys LLP. Mr. Cai is a diligent attorney and responded to our questions in a timely fashion. He and his staff were very helpful in keeping us informed of the proceedings of the case and in explaining each step. Mr. Cai is also very conscientious of fees and costs, and avoided unnecessary charges. The results of the Summary Adjudication sided with us. The Court Trial resulted in the “Final Statement of Decision” and “Judgment after Court Trial” overwhelmingly siding with us. Cynthia F.
I Am Truly Impressed. After spending a significant amount of time, money and efforts with my previous counsel at a larger law firm without getting meaningful results, I transferred my employment matter to SAC Attorneys LLP. The attorneys there were able to understand the complex situations of my case and put together an aggressive litigation strategy. We were able to file a compelling complaint within a week and forced the opposing party, which was represented by one of the largest law firms in California, to make a substantial settlement offer shortly thereafter. I am truly impressed by the no nonsense and results oriented approach by SAC Attorneys LLP attorneys. A job well done! X. Gao
They Took Time to Understand Our Technology. I am the founder of a bioinformatics start-up in the Silicon Valley and chose SAC Attorneys LLP as our corporate counsels. Their attorneys have great experience with high tech start-ups and were able to offer a highly competitive service plan while not sacrificing a bit of their quality of services. They took time to understand our technology and provided value added services by introducing investors and job candidates to us. We regard our attorneys at SAC Attorneys LLP not only as our legal advisors but also our venture partners. Dr. Pete S.