Business 101: 3 Simple Tips To Avoid Lawsuits

Business 101: 3 Simple Tips To Avoid Lawsuits

Whether you are starting a new business or already running a successful one, staying clear of legal trouble should be a priority. Hiring a business lawyer is more than a precaution, it is actually a critical component to success. A solid company does not seek legal advice only when they face a lawsuit, they seek it from the start to avoid potential complications.

In order to help you avoid potentially dangerous lawsuits, here are three important legal tips you should be aware of:

1. Comply With all Regulations Regarding Foreign Workers

Immigration lawyer Alice Antonovsky posted a blog entry about employer’s obligations towards their immigrant workers. It explains how they should verify each employee is legally allowed to work in the country. It goes on to clarify that such requirements apply only to valid employees and not independent contractors.

If you have issued a valid employment offer to a foreigner, make sure to have an experienced lawyer help with all the paperwork and application process. It will lower the risk for unnecessary mistakes and delays.

2. Leave Written Record of Every Agreement

Regardless of how reliable your business associates might be, you should always put your business agreements in writing. It will avoid misunderstandings in the future and provide a undisputable answer in case of unexpected requests.

David G. Bates wrote an article for The Business Journals to list a few recommendations for Entrepreneurs in order to avoid litigation. It not only suggests putting everything in writing, it also points out how crucial it is to review documents prior to signing them in order to make sure you understand what is being said and confirm that you agree.

3. Don’t Underestimate any Conflict

Lawsuits are often the result of misunderstandings and lack of timely actions. Reaching litigation should be the last resort. Letting small issues escalate is not a characteristic of healthy business models. Take the time to evaluate such situations and try to come up with a solution that suits everyone involved.

If you show your counterpart you have a genuine interest in resolving a conflict, they will probably agree to meet you halfway. Avoiding litigation is certainly worth the time and effort of participating in a few positive discussions.

As you may have noticed, avoiding a lawsuit is often a matter of taking the necessary measures before a conflict arises. In fact, it is about taking steps to prevent disagreements from surfacing. That is why having a lawyer assess your business is recommended. Remember to seek the advice of attorneys that have previous experience handling legal business matters.

Has your business been involved in a legal dispute before? Share your experiences below to help others in a similar situation. It might help them consider a completely new resolution to an overwhelming issue.