How Business Owners Can Protect Themselves if Their Business Fails

24 September 2022

15% of startups fail in the first year and only 50% succeed in the fifth year. Therefore, failure to take steps to protect yourself if your business goes bankrupt can have serious consequences.

These assets can be lost very quickly if you do not protect your hard-earned personal assets. Certain registry laws with simple steps can ensure you greater protection in the event of a claim or lawsuit.

If you have the right legal tools like a Business Attorney Atlanta GA in place before litigation begins, you will be in a much stronger position to weather the storm.

This article will help you understand some important steps that you must take to protect yourself in case your business fails.

Contents

1 Protect Yourself When Business Fails
2 How To Hire A Business Attorney To Protect Yourself?

Protect Yourself When Business Fails

Given below are some of the major steps that you must follow to protect yours;f when your business fails:

1. Speak And Act Mindfully

The way a firm is seen is crucial. This is one of the reasons why business owners and their staff shouldn’t make controversial claims or engage in dubious activities.

This involves making derogatory or disparaging statements, as well as avoiding doing business with dishonest individuals. Additionally, in critical situations, avoid speaking in the absence of a Business Attorney in Atlanta GA.

However, if they are discovered, the company’s name could be linked to them. Therefore, you and your staff must work to reduce conflicts of interest and avert potential problems. In addition, such events may compromise your credibility as a businessperson and result in legal issues.

Even if you don’t make choices that benefit your business, having a conflict of interest would still exist if you were a city council member and contributed to the passage of ordinances that benefited your company.

2. Hire A Business Attorney

Consult a lawyer before beginning a business to get legal counsel. Before you do anything, you might require legal representation.

It is ideal to employ experienced business attorneys knowledgeable about the regional laws and customs of the area where the firm works and who, if required, has experience in a certain field.

Engaging a tax attorney if your company is dealing with legal issues with the Internal Revenue Service (IRS) or tax authorities could be prudent.

You may discover an excellent attorney through a variety of sites. In addition, getting suggestions for experts from other business owners might be useful.

Alternatively, you might get in touch with the professional association your company belongs to, including your neighborhood chamber of commerce or sector association. Then, naturally, you may try making spam calls (and interviews) using the information in your phone directory.

3. Go For Insurance

All businesses must have civil liability insurance, covering things like changing jobs and consumer collapse.

The purchase of errors and omissions insurance for allegations or contracts or contractual errors from customers or consumers must be considered. Again, you can consult professionals for advice on this matter.

You can also add liability protection to your contract in addition to purchasing insurance. However, this agreement shall not be accountable for unfinished work.

A Business Attorney in Atlanta GA may not be necessary early on in your business if you speak with one now about the clauses and legal terminology that should go into your employment contract.

How To Hire A Business Attorney To Protect Yourself?

Hiring a good lawyer is essential to a successful business. A good corporate lawyer can provide critical support in almost every aspect of your business.

In most small companies, the sheriff sends a lawyer in front of the door. This was very late after receiving maintenance and complaints. The larger the law firm, the higher the overhead costs and the higher the hourly rate.

Larger firms have more influence in the local, regional, and (perhaps) national legal community. Partnering with a large and reputable law firm can have intangible benefits. They will gladly refer you to a funding source or use your name as a reference.

You need a lawyer to help you decide if a limited liability company is the best way to organize your business. In addition, your attorney needs to know how to register your business for federal and state tax identification numbers.

Note: Don’t be afraid to ask direct questions about your lawyer’s experience. Your corporate lawyer should be like a “doctor”. Beware of lawyers representing multiple competitors.

Additionals:

Sumona

Sumona is a persona, having a colossal interest in writing blogs and other jones of calligraphies. In terms of her professional commitments, she carries out sharing sentient blogs by maintaining top-to-toe SEO aspects. Follow more of her contributions in SmartBusinessDaily

View all posts

UAE Insurance Authority Sets New Regulations for Insurance Broking

The UAE Insurance Authority has rolled out new draft regulations for insurance brokerage and online transactions. This draft has 13 chapters and 38 articles that explain insurance broking like governance, registration and licensing, the insurance broker and insurance company roles to the broker, insurance broker’s roles, solvency, mergers, financial reports and disclosures, supervisions, dispute settlements, and penalties. Who is an Insurance Broker? The new draft law defines an insurance broker as a juridical individual who intervenes in insurance or reinsurance activities between the insurance/reinsurance proposer and an insurance/reinsurance company and receives a commission from the insurance/reinsurance company. The provisions of the new draft apply to distribution channels, companies, and any other insurance-related business approved by the authority. These regulations focus on shielding policyholders and guarantee that they receive value for their money by purchasing various products. The New Insurance Law Provisions The new insurance law requires an insurance broker to adhere to these regulations for electronic transactions. Criteria for Insurance Brokerage Licensing A company must be established in the United Arab Emirates and registered based on the Commercial Companies Law. The company should own a share capital of AED 3 million or more. You need to pay AED 10 million or more and register with the UAE Commercial Law if you run a branch of a financial Free Zone or a Foreign Company. You can consult a law firm in Dubai to help you with these procedures. It is mandatory to submit an unconditional Letter of Guarantee from a bank; this is paid on demand to the Insurance Authority chairman board of directors. This can be fully or partially liquidated to guarantee the broker’s settlement of transactions and obligations. You must obtain an insurance policy to cover your profession at a value of AED 2 million for UAE companies and a minimum of AED 3 million for a financial Free Zone or a Foreign Company branch in the UAE. You must appoint the administrative and technical staff continually. You need convenient headquarters, software, and technical systems for your profession. It is also mandatory to have an internal control system to govern applications of laws, regulations, resolutions, and circulars in adherence to the Insurance Authority regulations. The next step is to submit the agreement between you and the bank, pay the full fees, and comply with any extra regulations. The Insurance Authority approves or rejects the application within 20 working days. Technical and Administrative Staff The technical staff of an insurance broker has specific regulations. It is a requirement to appoint at least 1 General Manager, Internal Auditor, Operation Manager, and 1 qualified worker for each type of insurance. Below are the qualifications for the appointment of technical and administrative staff; A natural individual enjoying full capacity An individual of good conduct; never been sentenced for freedom restricting punishment in a moral decadency crime without rehabilitation. Pays his commercial debts even if not declared bankruptcy. You need to notify the Insurance Authority of appointments, transfers, terminations, or modifications within 60 days. Roles of the Insurance Broker You must make internal by-laws and submit a copy to the Insurance Authority Dubai offices within 3 months after obtaining a license. You must review and update the internal control system continually; this ensures that you have proper laws, regulations, resolutions, and circulars. It is necessary to design an Operations Guide for periodical updates, risk management, and review it according to the rules. Create a professional code of conduct for the staff and supervise and plan their duties according to the Insurance Authority (AI). Collaborate with the internal controller to enable employees to perform their tasks and report any violations to the authority. You can only dismiss the internal controller by the board of management or board of directors’ decision; this happens if you notify the internal controller and IA of the dismissal at least 30 working days before the dismissal. Penalties The IA developed penalties so that insurance brokers do not violate the instructions, regulations, laws, and circulars. If you violate any laws, you receive a warning that compels you to remove the infringement and ensure this does not happen in the future. The IA might suspend you from practicing for a maximum period of 1 year. The Insurance Authority cancels licenses in the following incidences; Violating any license conditions Gross breach of your obligations Failure to renew your license (delay paying fines or failure to pay renewal fees) A final bank declaration associating you with bankruptcy The dissolution and liquidation of your practice Failure to practice your licensed profession within 6 months after obtaining the license If you obtained your license through false information. The insurance sector in the United Arab Emirates is expected to rise; this is why the Insurance Authority issued new regulations to govern insurance brokerage. Brokers have to adhere to set regulations or face penalties. Technical and administrative staff also has to meet various qualifications. This allows brokers to have a set of laws to refer to. Read Also: Insurance- Need of the time 5 Top Tips to Help You Hire The Perfect Attorney

Learn How Personal Injury Claims Are Resolved in 5 Steps

It’s a fact that no one wants to go through a personal injury claim. Whether you’ve filed the case, or someone has filed against you, having to face a personal injury claim means someone was hurt due to someone else’s negligent actions and both sides will have to face the uncomfortable and challenging task of going through a legal claim. If you’ve never gone through a personal injury claim, you’ll want to touch base with an experienced litigation attorney like those at derricklawfirm.com who can help guide you through what to expect. While your attorney will be able to give you more accurate information about your specific case. Here is a general overview of how personal injury claims are resolved. 1. opening a claim: The first step in any personal injury claim is to open the actual claim. This means that you will open a claim with both your insurance provider and the insurance provider of the person responsible for your injuries or the damages to your property. This can be known as a pre-action protocol, and it will also be the time that the person you are filing the claim against will be notified. Most often, they will pass this information along to their insurance company who will deal with the claim on their behalf. Usually, insurance companies or the defendant will have a few months to investigate the accident and accept or deny legal responsibility. 2. Gather medical evidence: When liability is accepted, you’ll need to show how injured you were from the accident. This means that you will need evidence of the treatment you received. Sometimes, this can be as simple as getting hospital records, or it may take some time if you need to see specialists. Photographs of your injuries are an essential piece of evidence, as is how much help you needed while you were injured. This could mean having to hire medical care workers, or even just having friends and family help out around the house. 3. Receive and complete medical treatment: If you have suffered any injuries resulting from the accident, then it’s important to seek medical attention or be assessed promptly by your family doctor. Any treatment suggested should be followed and completed. This can take months since insurance companies usually want to see maximum medical improvement before assessing your claim. 4. Submit a demand package: Your demand package is a comprehensive document that details your injuries, the expenses incurred due to those injuries, and how a trial would be presented if it went to court. It may also include documents regarding lost wages, financial damages, and medical bills. 5. A settlement: You can get a decent settlement package if your demand package is strong and shows clearly the state of your injuries and the connection to the person who injured you. A favorable settlement will mean the resolution of your case if you can agree to the amount between you, the person who injured you, or their insurance company. If you decide on a settlement, you avoid having to go to trial. However, you should be careful not to accept the first number given to you if it’s not what you were expecting. Your attorney can help guide you further in those situations. What if the defendant denies liability? If the defendant denies liability, you may have to go to court to have it decided by a judge in court. This can happen if it wasn't apparent as to who was at blame or the officers didn’t place blame while at the scene of the crash. If this occurs, you will need to speak to witnesses of the accident. This is why it’s always recommended that you get the contact information of any witnesses who saw the crash. Read Also: How To Market Your Personal Injury Law Firm On Pinterest Things About A Personal Injury Lawyer

Bail Bonds: What You Should Know

Paying bail bonds are not as simple as it seems. Knowing and having the right understanding of how these work, how it is determined, what the payment methods are, and other important issues are very important for anybody who is facing an arrest or who has an arrested loved one. There are several questions asked online to shed light and find out what bail bonds are all about which you may also have, click here to find out the answers. What is Bail? It is a term to describe the release of a person arrested for a criminal offense before the end of the criminal case. It can involve - but not every time - the defendant paying money to a court; this is not a punishment. It ensures the court that the defendant returns to the court now and then while the case is ongoing. It ensures the court that the defendant does not fail to go to court without having to keep him in custody all the time. Bails are significant in both ends – the arrested and the authorities. It ensures that people, no matter if they have a case at court, are free and, also, it avoids having to jam-pack jails with offenders, while have not been convicted yet. With it, offenders can be released almost in any stage of the criminal justice process, either immediately after arrest or while the case is ongoing and the court has not issued a sentence yet. This means that if someone gets arrested, three possible scenarios can come to place: he is arrested and released without charge; he is arrested, charged, and released on bail; or he is arrested, charged and is held in custody until the verdict of the case comes out. Schedule of Bails This is a list of the amount of money applied to individual crimes and can be paid in terms of bails. State laws determine the amount appropriated for a crime, and they decide whether the arrested individual be released without posting any bond at all or if the individual is allowed to post any or not; or if allowed to post bail, should it be posted (and individual is released with it) after booking or should they wait for a hearing. If the state laws allow for immediate release after the appropriate amount is paid, the defendant can post this immediately and release will follow. But if the state law requires a hearing, the defendant will not be able to pay immediately after booking and be released, instead, he will have to wait for the hearing to ensure before anything else. Hearings During a hearing, the court would determine the amount applicably. However, courts do not always allow this; they can also deny it according to applicable state laws. If allowed, the amount will be determined using the following factors as a basis: Flight Risk Level: Sometimes defendants would escape the system especially when they are facing possible major sentences such as death or life imprisonment. These defendants are most likely to flee and escape the penalties. Degree of Connections to the Community: An individual who has a strong connection to the community where he belongs would be less likely to flee. For example, a defendant who has a business in his locality or whose entire family is in that locality, he will have a lesser likelihood of fleeing compared to individuals who have nothing to lose in that locality. Obligations in the Family: Sometimes the court will consider and require lesser bail to defendants who are responsible for the well-being of his family or who have other dependents. Assets and Incomes: When a defendant has a lot of money and/or assets, he may likely not be considered for a low amount. If the defendant is employed, the court may consider that the defendant may likely lose the employment. Court and Criminal Histories of Defendants: Especially individuals who have had histories involving failures to appear in court will most likely have to face higher bonds compared to those who are first-timers in court. Also, the court would look into the number of times a person may have been granted bail and have violated conditions related to the given considerations or who have failed to appear in court. The court will most likely impose higher bond amounts to these individuals as compared to someone without such history. The gravity of the Crime: More serious crimes require higher bonds and lesser serious crimes require lower bond amounts. Public Safety: If the release of an accused individual would pose a risk to the safety of others and/or the community, the courts would most likely refuse to allow bail. Examples for these are cases of treason, rebellion, terrorism, or conspiracy - a defendant charged with these crimes would most likely not be allowed to post bail. The Types of Bail Bonds Most of the time bail bonds are associated with money. The notion is that when one is arrested and he has the money, he can get out of jail immediately. However, it is more complicated than that. There are several questions asked online to shed light and know what bail bonds are all about which you may also have. Different states may have different types of bails, some may apply to another and in others, it may not. The different types may include cash bonds, signature bonds, property bonds, surety bonds, and others. Read Also: Under What Circumstances Can You Bring a Claim Against an Employer? Do I Need a Lawyer for a Car Accident that wasn't My Fault?

How Business Owners Can Protect Themselves if Their Business Fails