As a small business owner in Ohio, there are several legal steps you can take to protect your personal assets in the event of a lawsuit against your business.
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Incorporate your business:
By incorporating your business as a limited liability company (LLC) or a corporation, you can protect your personal assets from business liability. This means that creditors can only go after the assets of the business, not your personal assets.
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Obtain adequate insurance:
It is important to carry adequate insurance coverage to protect your business from liability claims. This may include general liability insurance, professional liability insurance, and workers compensation insurance.
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Keep your personal and business finances separate:
It is important to maintain separate bank accounts for your personal and business finances. This will help to protect your personal assets in the event of a lawsuit against your business.
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Follow legal and ethical business practices:
By following legal and ethical business practices, you can minimize the risk of facing a lawsuit. This may include hiring an attorney to review your contracts, having a clear and concise employee handbook, and following all applicable laws and regulations.
It is important to note that while incorporating your business can offer some protection for your personal assets, there are limitations to this protection. For example, if you engage in illegal or fraudulent activities, you may still be held personally liable for any damages caused by your business.
If you are concerned about protecting your personal assets, it is always best to consult with an experienced attorney who can provide personalized legal advice tailored to your specific circumstances.
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