Answers to Common Business Law Questions

Protecting your personal assets is essential and there are several ways you can safeguard them. First, it is important to understand and comply with all state and federal guidelines. Choosing the right type of business entity and setting it up correctly is extremely important. Business owners should also utilize liability waivers when appropriate, especially when your business poses any type of risk to your employees or customers. Another action business owners should take is to constantly review employee situations and update handbooks and policies. Of course, it's also essential to review all contracts, especially with your attorney, before signing them.

While Florida does not legally require an LLC to have an operating agreement, having one is strongly recommended. An operating agreement defines how your LLC is managed, how profits and losses are allocated, what happens when a member wants to leave or sell their interest, and how disputes are resolved. Without one, your LLC defaults to Florida's generic LLC statutes, which may not reflect your intentions or protect your interests. A well-drafted operating agreement is one of the most important documents your business can have.