Establishing a business structure determines the amount of liabilities that are associated with potential risks. For example, limited liability companies do not possess as many hazards as other structures. Typically, they are responsible for personal injuries, bank loans associated with the company, and any unethical business practices If you are starting a business or need help resolving a legal concern of your existing business, contact Serratelli, Schiffman & Brown P.C. today.
Limiting Liabilities
In terms of personal injuries, the business owner is liable for injuries linked to their products, slip and falls within their location, or if their servicing personnel presents a hazard that results in an injury. The owner can prevent these liabilities if they do not conduct business through an established location in which customers will visit. They can further enforce safety standards for the conduction of their services.
Additionally, product testing presents probable risks. The owner addresses these risks by altering the design to eliminate the risks. When products present a small probability of risks associated with improper usage, he or she will affix adequate warning labels on the product.
When conducting tax withholding requirements from employee wages, the business owner should generate accurate records. These records should reflect the required deposits submitted into the state or federal IRS office. They also present details based on the percentages withheld. This prevents liabilities to the Internal Revenue Service.
Illegal or reckless business practices could lead the owner to litigation. For this reason, the owner should monitor key employees to ensure that all regulations are followed. This could prevent embezzlement by accountants, for example. An attorney can assist the business owner with these strategies.
When starting their company, the owner should consult Business Attorneys Camp Hill to review any possible investors to eliminate fraud. Unethical investors are known for preying on start-up companies. An attorney can review any contracts proposed and determine whether they reflect illegal practices. He or she could advise the owner of more effective investment opportunities that will assist in generating adequate capital for the business.
