While no one can predict the future, taking steps to ensure your business is protected from the very beginning, secured in its privacy, and free from any accusations of bias can help to give your business a much better start than it would have otherwise.
Owning and operating your own business is one of the most challenging and ultimately rewarding things that you can do in your life. Seeing your ideas come to life can be exciting, but it can be easy to miss some important legal steps at key moments. Overlooking legal issues can happen, but with the right knowledge, you can avoid making mistakes that can end up being very costly down the line if not taken care of appropriately.
When you’re starting up your first business, no one will fault you for being a bit green. The world of business isn’t the most forgiving one, and the chances that you’ll make mistakes are higher than the likelihood that your first business venture will be a huge success. Hiccups will always happen, but it is important to realize that some of the most important legal steps that need to be taken happen as businesses are just getting started.
There are mountains of paperwork to file in order to even start a business, and arguably the most important is your Limited Liability Company operating agreement. An operating agreement for your LLC makes sure that everyone involved in the LLC is working off of the same knowledge as to how it will be run. Additionally, an LLC operating agreement clarifies who owns which portions of the LLC, who will be making which important decisions for the LLC, and what should happen to all the assets if the LLC is dissolved.
Even if you are the only member of your LLC, an operating agreement is still highly recommended for several reasons. First, the operating agreement works to further separate your business from you as an owner which can protect you from liability in certain situations and also helps to clarify how your taxes will be filed. Coming up with an operating agreement is a simple matter when compared to the huge amounts of paperwork and documentation that you’ll already be filing when starting up your business, so it only makes sense to get the ball rolling.
Privacy And Security
Keeping highly accurate records of your business dealings is important, especially in an age where records are increasingly stored digitally and run an increased risk of data corruption, theft, or loss due to a disaster of some sort. Making sure that your business and customer data is securely stored and backed up protects you legally in the event that the valuable data is compromised.
It is also important to be aware as a business owner of the many different data privacy laws that vary state by state. There is no one single set of data privacy laws and individual states have the right to enact stricter or more lax laws at their discretion. For this reason, doing your homework in regards to the privacy laws where your business is located is needed for continued success.
Avoiding Accusations Of Bias
Unfortunately, small businesses don’t often have the funds needed to defend themselves in a court of law if accusations are brought up against them. Avoiding legal issues in the first place is your best bet as the owner of a new business. One of the best ways to do that is by making sure that there is no question of bias in hiring practices or company culture or day to day operations. You cannot personally control every part of your business, so it is essential that you put in measures to prevent instances of bias early on.
Accusations of bias are often centered around the HR department of a business, especially when it comes to the hiring process. During interviews, unconscious biases can result in the asking of potentially illegal interview questions revolving around race, religion, sexuality, family planning, and disability. Luckily, new technology like data analytics can help you during the hiring process to avoid biases from the initial screening all the way through the hiring process by looking at only the important and relevant information regarding potential employees.
Data analytics helps you to make more informed business decisions in general and using the power of analytics to further help you avoid bias throughout your business dealings is a wise move. While data analytics are not themselves immune to bias, they do remove human bias from the equation by only weighing data without any attached baggage.
At the end of the day, your business deserves to have as much protection from liability and legal issues as is possible. While no one can predict the future, taking steps to ensure your business is protected from the very beginning, secured in its privacy, and free from any accusations of bias can help to give your business a much better start than it would have otherwise.