Business Basics

What you need to know to keep your business compliant and your personal assets protected

April 16,2021 | Business Basics, Legal Tips

Successful business owners have several things in common. One of the most important is a strong legal strategy that supports key business goals rather than undermining or ignoring them. 

At its foundation, a smart legal strategy begins with the basics: annual legal requirements to remain an active and legitimate business entity, reporting requirements, filing requirements, and financial obligations at the federal, state, and local levels. To add complexity, even though we’re still at the foundational level, those obligations often require action with multiple offices at each level. We’ll get into that part later.

“Failing to implement a sound legal strategy based on business goals, not only puts your business at risk but can make you personally liable for the business’s debts and liabilities.”
Business owners often lose sight of the critical role their legal strategy (especially these foundational legal requirements) plays in the success of their business, as these important obligations get lost in the shuffle of daily business. We get it—time is money, and your time should be focused on activities that generate income. However, failing to remain current on these obligations (and failing to implement a sound legal strategy based on business goals) not only puts your business at risk but can make you personally liable for the business’s debts and liabilities. 
Happy Office Business Basics

One of the main reasons many business owners form a business entity is to shield themselves from personal liability for the activities of the business. When properly formed and maintained, business owners are not personally responsible for the debts and activities of their business. In other words, if a business takes out a loan, the individual or entity that loans the business that money cannot go after a business owner’s personal assets unless specifically provided for within the loan agreement. Similarly, if someone is injured by the business’s activities, the injured party cannot go after a business owner personally for damages related to those injuries.

But here’s what many business owners miss: that shield of protection can vanish if you fail to stay on top of the legal requirements necessary to keep your business active. You’re probably asking yourself—what do I need to do now? Sign up below for our email list and learn about the 7 Things You Can Do to Keep Your Business out of Legal Trouble.

About Skepsis Legal

Skepsis Legal was created by award-winning attorney Devon Thurtle Anderson after working for more than 15 years using a traditional retainer/time=money legal model. Skepsis Legal is a wholistic, subscription-based approach that’s proactive rather than reactive. A better way to protect your business.

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