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Avoiding liability as a start-up

Start-ups are under enormous pressure in the 21st-century economy to develop and push products to customers as soon as possible. The current pace of start-up development and market. Understandably, you want your business to be a success, therefore, you try to work as quickly as you can. But that quickened pace comes with added legal liability issues, including compliance problems and lawsuits from customers or other competitors. This post will go over some of the problems a start-up faces if it moves too quickly.

Do not ever service customers at your business location until you obtain premises liability insurance. A single slip and fall, even if the other person is not seriously injured, could bankrupt your nascent business. Defending an action in court, even if you are completely innocent, costs thousands of dollars.

Furthermore, do not officially open to the public until your business premises undergoes an inspection. Certified inspection reports partially shield you from liability if someone is injured due.

Furthermore, depending on your business, there are other numerous compliance issues. For example, if your business involves alcohol, you will need a license. Also consider that if you hire employees, you will need to obtain workers’ compensation insurance and handle payroll taxes. It is critical that you fulfill all compliance issues before officially launching your business to the public, you could face serious challenges if you have to deal with it after the fact.

As illustrated above, start-ups are fraught with potential business litigation issues. It is critical that you don’t take your entity status for granted or work around tried-and-true business practices. Yes, it does slow down your business operations if you follow strict internal practices, however, maintaining consistent policies and following through on those policies are the best ways to insulate you, your business associates, and your business from liability.

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Carr Law Firm, P.A.
203 E. Livingston Street
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