Protect,Your,ASSets,Business, DIY Protect Your ASSets in Business
Normal 0 false false false MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable{mso-style-name:"Table Normal";mso-tstyle-rowband-size:0;mso-tstyle-colband-size:0;mso-style-noshow:yes;mso-style-parent:"";mso-padding-alt:0in When starting a new work at home business it is very easy to become consumed by it. We spend so much time trying to get the business up and running that we may end up becoming burned out and lose our motivation. There is so much to learn and
-----------------------------------------------------------Permission is granted for the article below to forward,reprint, distribute, use for ezine, newsletter, website,offer as free bonus or part of a product for sale as longas no changes are made and the byline, copyright, and theresource box below is included. -----------------------------------------------------------Protect Your ASSets in BusinessBy Stephen BucaroMany people are starting an online business without athought about the danger this may pose to their personalassets. The type of protection you need depends upon thenature of your business and the amount of your personalassets.If you have no personal assets, you probably don't needmuch protection. They say "you can't get blood from aturnip". Hey, if someone wants to take over your creditcard debt, they are welcome to it!But if you do have investments, or own a home, and someonesues your business, they could take your personal assets.If you do not incorporate your business, by default it isa "sole proprietorship". This means your business is YOUand your assets are at risk.If your product is something like greeting cards, then youare not extremely vulnerable to a lawsuit. You would thinkit would be difficult for someone to be harmed by agreeting card, but someone might interpret the prose on thecard as personal character defamation, or they might get apaper cut from the card. Remember a few years ago whena lady sued McDonalds after she burned herself by placing acup of hot coffee between her legs?If your product is a food item or a physical object, youcould be especially at risk of a lawsuit. The list belowprovides some steps you should take to protect yourself ifyou run a business.1. Incorporate your business. A corporation is treated likea separate individual. If the corporation is sued, yourpersonal assets cannot be taken. You don't need to pay alawyer $1000 to file the papers to incorporate yourbusiness. You can do it yourself for about $50.2. Post a disclaimer on everything you make. Yourdisclaimer should include a phrase like; "you do not makeany warranties of merchantability or fitness for aparticular purpose, either expressed or implied. By usingthis material, the user assumes complete responsibility forany and all damages resulting from that use."3. Provide a "limited warranty" that defines the specificthings that you guarantee about your product. If you don't,then your product is subjected to the default general"warranty of merchantability". Basically an unconditionalguarantee.4. If mis-assembly or misuse of your product might causedamage, then you need to provide complete instructions.Clearly state the proper use of the product and place awarning about misuse of the product.5. Place large clear warning labels on your product andthe packaging. The presence of warning labels has protectedmany businesses from large legal settlements.6. Write a complete manufacturing specification for yourproduct. Many lawsuits are based on the presence of a"manufacturing defect". Although a specification can workagainst you, if you don't have a manufacturingspecification, that in itself is evidence of negligence.Don't jump into starting a business without taking steps toprotect your personal assets. A business failure is a sadthing, but a business failure where you also lose yourpersonal assets is a tragedy.And by the way - I make no warranties of merchantability orfitness for a particular purpose, either expressed orimplied. By using this material, the reader assumescomplete responsibility for any and all damages resultingfrom that use.-----------------------------------------------------------Resource Box:Copyright(C)2002 Bucaro TecHelp. To learn how to maintainyour computer and use it more effectively to design a Website and make money on the Web visithttp://bucarotechelp.comTo subscribe to Bucaro TecHelp Newsletter Send a blankemail to bucarotechelp-subscribe@topica.com-----------------------------------------------------------
Protect,Your,ASSets,Business,