--- title: "Personal Jurisdiction Law: Entrepreneurs Beware" description: “Personal jurisdiction” law dictates where your business can file a lawsuit and, on a related note, where your business can be sued. image: https://blog.goosmannlaw.com/hubfs/Blog_Images/PersonalJurisdiction.jpg --- [![Goosman Lawfirm](https://blog.goosmannlaw.com/hs-fs/hubfs/Goosmannlaw%20October2017/images/Goosmann_Law_Firm_logo_4C-white.png?width=1250&name=Goosmann_Law_Firm_logo_4C-white.png "Goosman Lawfirm")](http://goosmannlaw.com/) - [COVID-19 Toolbox](https://goosmannlaw.com/covid-19-resource-toolbox/) - Our Team - [Attorneys](https://goosmannlaw.com/attorneys/) - [Non-Attorney Staff](https://http://goosmannlaw.com/non-attorney-staff/) - Practices & Industries - [Practices](https://goosmannlaw.com/practices/) - [Banking & Finance](https://goosmannlaw.com/banking-finance/) - [Bankruptcy, Restructuring & Workouts](https://goosmannlaw.com/bankruptcy-restructuring-workouts/) - [Business](https://goosmannlaw.com/business/) - 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[  (855) 843-4531](tel:855-843-4531) ![](https://blog.goosmannlaw.com/hubfs/Blog_Images/Lockbox%20Lawyer/close-button.png) [tel:855-THE-GLF1](tel:855-THE-GLF1) [Litigation & Trial](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/litigation-trial) [Personal Jurisdiction Law](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/personal-jurisdiction-law) # [Personal Jurisdiction Law: Entrepreneurs Beware](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/personal-jurisdiction-law-entrepreneurs-beware) By [Goosmann Law Team](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/author/goosmann-law-team)   |  10, August 2015 [READ NOW](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/personal-jurisdiction-law-entrepreneurs-beware) [Read Post](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/personal-jurisdiction-law-entrepreneurs-beware#article) [![](https://blog.goosmannlaw.com/hs-fs/hubfs/Logos/Logo1.jpg?width=60&name=Logo1.jpg)](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/author/goosmann-law-team) [Goosmann Law Team](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/author/goosmann-law-team)  Tags: [Litigation & Trial](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/litigation-trial) [Personal Jurisdiction Law](https://blog.goosmannlaw.com/trial-lawyer-on-you-side/topic/personal-jurisdiction-law) ![PersonalJurisdiction](https://blog.goosmannlaw.com/hs-fs/hubfs/Blog_Images/PersonalJurisdiction.jpg?width=791&name=PersonalJurisdiction.jpg) So you’re an eager entrepreneur, expanding into new geographic territories as your business expands.  Be careful – your exposure to litigation in other states is also going to increase as you cast a wider net.  Good news: you can take precautions to minimize the growing pains.     --- “Personal jurisdiction” law dictates where your business can file a lawsuit and, on a related note, where your business can be sued. In a nutshell, your business must have sufficient contacts with a state before you can be hauled into court in that particular state.  Determining whether you have sufficient contacts with a particular state is a fact-based question, but suffice to say if you are working on a project in another state, and a lawsuit arises out of your activities in that state, you are probably going to be subject to personal jurisdiction in that state. Problem?  Maybe, maybe not.  Maybe a little.   As you enter into foreign lands, whether it be California or Iowa or New York, there are some things you can do to protect yourself from getting dragged into a courthouse (1) 1,000 miles from your home; and (2) in the backyard of the party who sued you. First, you can include a provision in your contracts to control where you can be sued.  These types of “forum selection clauses” are generally enforceable. For example, if you are a Minneapolis-based architectural firm and you are going to work on a construction project in Sioux City, Iowa, you can include a provision in your contract specifying that any disputes related to the project will be resolved in a Minneapolis courtroom. Second, you can include an “alternative dispute resolution” clause in your contract.  For example, you could include a provision which requires the party to resolve any disputes before an arbitrator.  Many businesses believe they will get a “fair shake” with an arbitrator in comparison to a jury full of their opponent’s peers.                                          Third, and speaking of juries, you could include a provision in your contract which requires the parties to waive their right to a jury if a dispute arises.  Not only does this reduce your anticipated litigation costs (jury trials typically cost a lot more than non-jury trials), but it eliminates the possibility of getting “home-towned” by a local jury standing up for its local business who sued an out-of-town business (that would be you). Don’t be afraid to grow your business. 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