One of the biggest worries for a small business is the possibility of being sued. When a business is sued, there is always the chance they won't recover from it financially and might be forced to close their doors. There are some steps you can take that could help prevent litigation from happening to your business.

Hire a Business Lawyer

Hiring a business lawyer is an important step, because right from the start of your business they can help you structure your company to ensure your bases are covered. A business lawyer will provide general legal services and can recommend the best route to take when choosing the type of business to register--for example, an LLC to protect you from personal liability--and they can help you set up a tax structure suitable to your business type.

If your business manufactures a product, a lawyer can guide you through the regulations and rules you need to follow in the manufacturing process, and how to register your product with the government if you need to.

Making Clear Policies

A lot of the time, litigation can be avoided by creating very clear policies for your business. When there is poor communication or understanding of policies between your customers and your business, there is a greater chance of something going wrong that could result in a lawsuit. Your lawyer can help you plan how you carry out transactions with your customers, how you will handle any complaints or refund requests and if a product caused an allergic reaction or was just not what the customer wanted.

A lawyer can also help prevent problems with employees' contracts and rules regarding attendance, advancement opportunities, and payment issues.

Mediation

A lawyer can help with preventing a lawsuit by helping with alternative routes to litigation such as mediation. When you can sit down with your customer or employee and talk with a neutral third party like a lawyer, all parties can work together to solve the issue instead of heading to court and having a judge or jury handle it. This can help retain a good working relationship and sometimes, that relationship can continue after mediation has been completed.

Mediation and arbitration are often less expensive than heading to court and they are usually much faster than waiting months for a court date in order to solve any issues.

Contact professionals like Dunn, Martin, Miller & Heathcock, Ltd. for more information.