Some other things you need to do if you choose to hire employees are: Preparing an employee handbook that shares how any disputes or issues that arise with workers will be handled can help reduce risks for your business.Īny risk you're able to reduce by putting details in written form increases your company's chance of achieving success. Labor laws are complicated, and the penalties for making mistakes in regard to employee relations are steep. If You're Hiring EmployeesĪnother way to protect your business is by planning ahead for hiring employees. Taking advantage of written contracts can simplify the process of running a business. This reduces the risk of confusion over pricing or other terms of a transaction. You should ideally have written contracts with any entity you deal with, including suppliers, landlords, and customers. One key reason to put the terms of your business dealings in writing is that a well-written contract reduces the risk of a misunderstandings with clients and it outlines the procedure clients and employees can expect if anything goes wrong. So, if anything goes wrong with your business, your personal assets can be seized to cover debts, including your home and any funds you've saved over the course of your life for retirement. With these business formats, you are not required to register with the state, but you're also personally liable for any debts and problems related to your business. The simplest types of business to set up and run are partnerships and sole proprietorships, but these also carry the most risk for owners. Business Formats with Less Protectionĭifferent business types are treated differently under the law. As a business structure, you gain the liability protections corporations enjoy and the simplified tax preparation that partnerships get use. Legal regulations regarding how the business is managedĪn LLC is similar to a cross between a corporation and a traditional partnership.Some things that are handled differently include: There are certain things you have to do in specific ways when you run an LLC.

At this time, it also becomes regulated under the body of corporate law. When you form an LLC, your cleaning business becomes its own financial and tax entity.

Should a Cleaning Business Be an LLC? Registering a cleaning business as an LLC, or Limited Liability Corporation, puts a layer of protection between anything that happens with your business and your personal property.

Cleaning comp