Starting a new business? The U.S. Bureau of Labor Statistics indicates that 20% of new businesses fail in the first two years, 45% in the first five years. As daunting as those figures may seem, there are measures you can take to avoid your new business becoming a negative statistic. Below are 11 reasons a business can be in trouble, often before even opening its doors.
Although quick, easy and cheap, hanging out a shingle for your new business without considering a more formal statutory structure leaves your personal assets at risk as you are not separate from your business. A successful plaintiff may be able attach your home and everything else you personally own to satisfy a judgment.
Best Practice: Structure and register your business as a corporation or limited liability company. Both structures provide immunity against personal liability in most situations. If you are using a fictitious name in your business rather than the formal registered name, make sure you register that as well. Using a non-registered fictitious name absent association with the company can also result in personal liability.
Not separating your personal assets from those of your business can result in personal liability even if you have registered your business as a corporation or limited liability company under the doctrine of “piercing the veil.” If you fail...
A US judge has dismissed veteran singer Smokey Robinson's defamation claim against four former housekeepers who have accused him of sexual assault. The women sued the Motown star, 86, last year fo...