Starting a business can be an exciting and sometimes overwhelming endeavor. Often money can be tight in the initial stages of forming a business and sometimes one of the last things that people want to do is spend money on a lawyer. However, spending a little money up front to have a lawyer set up your business properly could save you in the long run.
If you are looking to start a business, it is important you consider the following reasons why you should enlist the services of a knowledgeable business law attorney. Online legal programs and do it your self forms are not a substitute for a knowledgeable business law attorney.
1. Choosing the right entity structure is key: One of the easiest and most basic tasks of forming a new business is to choose an entity structure (sole proprietorship, LLC, corporation). This decision is critical. You can read about the various types of entities here. If you choose the wrong entity, you could find yourself exposed to unlimited liability against lawsuits or you have made a tax mistake that can have a huge impact on your personal taxes. An attorney can examine your situation and help you choose a structure and taxation model that best fits your needs.
2. You can protect your information and property (intellectual property): It is important you investigate the need to and take any steps necessary to protect your product ideas, trade secrets, and customer information to maintain your competitive advantage and shield yourself from others who could use this information to the detriment of your business. All intellectual property of the business should be evaluated and if necessary protected to prevent competitors for taking over those ideas which are paramount to your business success. A knowledgeable legal professional can prevent this from happening and preserve your legal right to your intellectual property.
3. Avoid potential employment issues: Starting a business also means that you will have to comply with all federal and state employment laws. These laws dictate legal procedures regarding pay, hours, overtime, sexual harassment, and discrimination. Failing to consult with a business or employment attorney can expose your business to a variety of employment lawsuits. Even simple tasks like drafting job descriptions or interviewing applicants can create a myriad of problems if done improperly. Good legal advice can help you avoid these problems with ease.
4. You’ll be up and running faster: Creating a business involves an incredible amount of paperwork and legal formalities that can confuse even the savviest of people. Drafting legal documents, appointing officers, directors, securing capital, and complying with tax disclosure requirements can be handled more smoothly and accurately with the assistance of a business lawyer, giving your business the boost it needs to get started faster.
5. Ensure proper contract use: Businesses interact with various different parties during everyday operations, including vendors, customers, service providers, and landlords. All transactions or arrangements your business makes should be recorded in written contracts to avoid disputes down the road. A lawyer can examine all prospective transactions your business may encounter and protect you from any unfair or unnecessarily risky deals. Contracts should be carefully drafted by a lawyer for the situation at hand.
If you are starting a business and would like the services of an experienced business lawyer, please contact us. We provide costs effective legal services to business of all sizes.
Disclaimer: The information in this blog post (“post”) is provided for general informational purposes only, and should not be construed as legal advice from Leos & Gilkerson, PLLC or the individual author, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this Post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a licensed lawyer.