Because we're never afraid to be service-y, we urge you to check out Entrepreneur's excellent guide to avoiding lawsuits, both as a small business owner and as a business. Really, is there anything you need less right now than a lawsuit?
Generally, the idea seems to be, first, to avoid getting sued personally by drawing stark divisions between yourself and your business, and then, second, both to protect your business as much as you can and to minimize how much it can actually get hit for in a suit.
As to the first thing, it's not enough just to incorporate--you need to make it incredibly clear that you are not your business, and vigilant to ensure that you never are (don't take checks addressed to you for business debts!).
As to the second, it's a combination of contractually disclaiming liability where you can and then leaving your business minimally vulnerable--by being smart about insurance, by transferring assets--where you must.
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