Starting your new business is a unique experience, you are filled with excitement to finally bring your business idea to life but trepidation is just as much part of this process. The responsibility of being the captain of the ship can be challenging and that’s why it is important that you get expert support to guide you and your business in the right direction before it’s too late.
A lot of business fails during the first year, which is why it is essential to have the right team beside you to ensure your business is set for stability and then success. One of the important roles in your initial team is of an experienced business attorney.
Depending on the nature of your business, you can hire an attorney with the right expertise like a tax consultant, international business, or money laundering lawyer. However, the engaging services of an experienced business attorney will make a big difference in getting a strong start, making smart choices, and avoiding dangerous pitfalls.
Let’s look into five major reasons why new businesses must hire a business lawyer to improve their chances of surviving in the competitive market and even thrive by avoiding inevitable obstacles.
Form and structure the business
Whether you are planning to form a sole proprietorship, a partnership, a limited partnership or limited liability company, or any other type of business structure, you have to take several important decisions regarding the distribution of assets and responsibilities of liabilities based on the business form you choose. How your business is initially created and how well you manage the aspects of that business structure will determine how well your business survives during the first stage. Your business attorney will not only help you establish your business in your decided structure but he or she will also ensure all legal formalities are met as required by law for that specific business entity.
Besides, if you have business operations running in more than one state, you will need a business attorney to make sure the business is meeting the legal requirements of all state laws and you get to enjoy all possible rights and protections from each state.
Arranging and managing business finances
The type of business entity your startup is will affect the business and legal procedures that apply to you. Your business lawyer will be able to help you in financial areas like raising capital, keeping records of all business documents, income, and expenses, and applying for business loans, using his or her expertise, as required for your specific type of business form. Above all, the lawyer will have a better understanding of what it takes for a business to be fiscally responsible.
Besides managing business finance, your attorney will also act as your legal counselor and help make sure the company makes the most benefit of tax breaks and avoid any possible situation that ends with your business paying tax penalties. Some other financial areas that the attorney will manage include organizing your tax payments, paying taxes and filing tax returns on time, and providing his expert legal advice in any matter concerning the business.
Manage and protect business liabilities
Your business lawyer will establish your business in a manner that ensures the owner(s) or investor(s) and their families are protected from any personal liability towards the business in case of lawsuit and debt. The attorney will also ensure that the business strictly follows all state and federal laws as applicable in order to safeguard all possible benefits and protections that the business can claim. When you are running your new business, there is no practical alternative to a knowledgeable and experienced business attorney, in terms of following copyright and trademark laws, zoning laws. employment laws, and premises liability laws.
By maintaining a close relationship with your business attorney can turn out to be a huge advantage for you and your business. You can easily consult him or her on any current problem or what might become a problem for the business in the future. You can also benefit from expert legal advice and guidance on critical business issues and concerns regarding the partners, vendors, customers, employees, and independent contractors.
Draft and manage legal documents and procedures
Before your business operations even start you are required to draft and review any legal documents for business formation and other procedures to bring your business into an operational state. That said, your business attorney plays a big role in helping you during this time. The lawyer to draft and review the legal documents like business operation licenses, state registrations, contracts, permits, business forms, and more. You need someone with technical expertise and legal knowledge like a business attorney to ensure you are not signing up for something that becomes a big problem for you later on.
How well your business operates in the future and the success of your business is largely dependent on how well your initial documents and legal procedures were handled. Besides, businesses continue to require legal expertise for drafting and reviewing documents as they expand operations.
Handling dispute resolutions for the business
Establishing and running a business means having to engage, deal with, and work with different people, companies, and organizations. That said, regardless of how careful you might be in minimizing disputes or ambiguity in business matters, problems and disagreements are bound to arise. When that happens, it can be a big advantage and very reassuring to have a business attorney actively working for you.
Your business attorney not only represents your business, but they are also able to negotiate in your place with whatever situation you find yourself confronting. They use their legal expertise and technical understanding of your business’s legal standing to negotiate with a partner, a vendor, an employee, or a customer. However, in case if negotiations fail, you still feel a huge relief because you know your business is being represented by a skilled professional who is capable to fight aggressively for the rights of the business in every capacity.