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Don't Let Your Texas Small Business End Up In Court

Lawsuits are a threat to any small business in Texas and can come from any direction: a dissatisfied customer, a disgruntled employee, a covetous competitor or a spiteful supplier.

The results can be devastating to a small business owner.

One in three small businesses polled by the U.S. Chamber Institute for Legal Reform have had a lawsuit filed against them in the past 10 years. The tort liability to U.S. small businesses including settlements, administrative expenses and defense costs amounts to $105.4 billion annually.

However, Texas small business owners can reduce the risk of a lawsuit by being proactive.

  1. All businesses should have liability insurance. In addition, be sure to have protection against liability built into all of your contracts.
  2. You can reduce your risk of loss by legally separating your personal assets from your business assets. This can be done with the help of our law firm by forming a corporation, a Limited Liability Company or a trust. That way only business assets are at risk.
  3. Like a new parent baby-proofing a house, you need to safeguard your business from possible dangers whether it be using caution cones to warn customers about a wet floor or offering regular safety training sessions for employees. Regularly review Occupational Safety and Health Administration (OSHA) rules in Texas and have an anti-discrimination and anti-harassment policy in place.
  4. Get everything in writing. More than one "gentlemen's agreement" has ended up in court. Make sure everything is spelled out including costs, obligations and damages in case of a breach of contract.
  5. Don't ignore complaints. Respond quickly to resolve the complaint and appease the client or customer. Even if you feel you've done nothing wrong, an apology, discount or waiving a fee may be a lot cheaper than a lawsuit.

If you have questions about protecting your family business and your personal assets from a lawsuit targeting your business, contact our office.

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The Johnson Firm, P.C.
2400 Lakeside Blvd.
Suite 120
Richardson, TX 75082

Phone: 972-587-7545
Fax: 972-925-9227
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