Any time you start a new business, there is the potential for lawsuits, especially if you do not set up your business correctly. There is no way to make your business bulletproof from business litigation, but you can reduce the likelihood of a lawsuit and the financial implications of one. Having an experienced business attorney advise you on how to protect your startup against litigation before it starts is your best protection. Below is a list of lawsuits that startup companies often go through:
Breach of Contract Claims: Start ups sometimes enter contracts that are not in their best interest or run out of the funds needed to fulfill obligations they made. Our attorneys will review your contracts before you sign them and help reduce the likelihood that you have to face this type of claim.
Intellectual Property Claims: The intellectual property of your startup is valuable. Former employees may create disputes regarding the ownership of the intellectual property they created when working for you. We will help protect that property by drafting invention assignment and confidentiality agreements.
Employee Discrimination and Wrongful Termination Claims: The complex state and federal claims are frequently filed against businesses when they terminate a difficult employee or reject a minority or disabled applicant. We understand the nature of these termination, discrimination, and disability laws and can help ensure that your startup is in compliance with these laws.
Hour and Wage Claims: Do you know whether you should pay your employees a salary or hourly wage? What are the benefits and risks? These are common questions that employers often ask themselves when starting up their business and hiring new employees. Employees are classified as non-exempt or exempt and it is important that you do not misclassify your employees. Do your employees need health insurance? Are you familiar with California overtime laws? Even unintentional violations of local, state, or federal wage laws can result in claims against your business. We can help you avoid these types of claims.
Prevent Business Litigation Before a Claim is Filed
The best way to stop business litigation is to prevent a claim from being filed by seeking counsel from an experienced business attorney. An attorney will help you prevent litigation by advising you on the potential legal issues your startup may face and help you form your business so that these issues are less likely. An attorney can also advise you how to protect the future of your company by advising you how to structure your startup and drafting enforceable and clear business agreements and contracts.
If you do find yourself in a lawsuit, you need to seek the advice of your attorney. Although these lawsuits may seem simple and straightforward, they are anything but. The future of your business may depend on adequate legal representation.
Contact a California Business Attorney Today
The skilled attorneys at Verhagen Bennett LLP will help your startup avoid potential business litigation or help defend your business if you are already facing a lawsuit. If you are interested in learning more about how we can help legally protect your business, contact us today to schedule a consultation.
© 2019 Verhagen Bennett LLP — This article is for general information only. The information presented should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.