As a startup business owner, you wear many hats, from being the chief accountant to your very own brand ambassador.
However, one that you can’t wear is your company’s legal representative. You may know a thing or two about business law, but it’s best to leave legal matters to the experts.
Starting a business is a monumental decision, and if you’re going to do it, you better do it the right way. Most startup entrepreneurs get the business side of things right but tend to overlook certain details. For instance, most startup business owners minimize the importance of hiring a business lawyer — until it’s too late.
In today’s post, we’ll highlight a few reasons why it’s always a good idea to hire a legal team for your startup. Read on for expert entrepreneur advice!
Contents
1. To Protect Your Assets
Assets are the backbone of the business. They’re sometimes even more important than profits, especially at the early stages. You don’t have to go to business school to know that assets are pretty volatile and are the focal point of many legal battles.
Business owners incorporate their businesses to protect their assets from personal liability. Expert legal advice is necessary for the proper incorporation of articles. A competent legal team will help you develop a solid asset protection plan to separate your personal assets from your business.
2. Decision-Making During the Concept Stage
Multi-billion dollar companies like Amazon started as simple ideas, and your small business has the same potential. However, you’ll need proper legal counsel when making crucial decisions for your business to hit the targets you intend.
A business lawyer will help you from choosing a business name to the location. Remember, your state’s secretary of state won’t accept a name that’s already taken by another business, and that’s the least of your worries. You also have to be careful with zoning requirements and other legal protocols.
A reputable attorney is invaluable during the concept/idea stage to make sure all your business ideas align with the law.
3. Taxation Issues
Unfortunately, handling business taxation issues requires much more than just a notebook, pen, and calculator. To be in good books with Uncle Sam, you’ll need to be in compliance with state, local, and federal tax requirements. This is a feat that’s difficult to accomplish unless you have proper legal counsel.
Taxation is one of the most complicated aspects of business law. However, with the right legal team, navigating these convoluted tax laws will be a breeze.
4. For Proper Licensing and Permits
Any business operating without a valid license or permit is illegal. Operating an illegal business equals a hefty fine or sometimes even jail time. However, sometimes you may not even know you need a certain permit to run your business.
Unfortunately, ignorance is no defense in court.
A lawyer will help you acquire all the necessary licenses and permits before starting your business. That way, you don’t have any run-ins with the law because of lack of or improper licensing.
5. For Negotiating Deals and Drafting Contracts
Contracts are a staple of all businesses, even for startups and small businesses. Signing these contracts can be a tad intimidating for a new business owner, let alone drafting them. It’s a good idea to have your attorney review any contract before signing it to ensure you’re not doing yourself in.
A business attorney will help you draft contracts that work for the best of your company. These attorneys are also excellent representatives at the negotiating table. They will ensure you never get the short end of the stick in any deal.
6. Help With Matters Concerning Insurance
Insurance companies aren’t the easiest to work with, especially for startup companies.
Remember, as a business owner, you’re not only responsible for your business but also for your products. It’s up to you to ensure that your products don’t harm your customers/clients, and if they do, your customers are compensated accordingly.
A business attorney will ensure you have proper personal liability protection should the expected happen. They will also negotiate a fair premium so you get bang for the buck. If you’re having trouble choosing the right insurance policy for your business, let your attorney pick one for you.
7. Assist With Employee Policies
Small businesses are at the core of the American economy, making about 99.9% of all businesses in the country. Each state has stringent regulations that protect employees’ interests, and some of these regulations may not be that obvious.
Recruiting talent for your startup company requires tons of planning and documentation. The help of a qualified attorney will be invaluable during this process. They will ensure you comply with all employee policies and laws.
8. Real Estate Leases
You’ll obviously need a premise where you’ll run your business. Renting a premise for your business is unlike renting an apartment to call home. You’ll enter into something known as a commercial lease agreement, which is a binding agreement between you and your landlord.
The keyword is “binding” because a breach of the agreement could result in dire legal consequences. That’s why you need an attorney to ensure that the commercial lease agreement works for the best.
Keep in mind that evacuating the premises before the expiration of the term is a breach of the agreement. Your lawyer will ensure that the real estate leases don’t set your business up for future problems.
9. For Peace of Mind
Starting a business can be overwhelmingly stressful, but hiring the right attorney can help ease the pressure. At least you’ll rest easy knowing that your business is right by the law and is geared for success.
Consider hiring a business lawyer for the ultimate peace of mind.
Your Startup Business Needs a Legal Team
Running a startup business without a proper legal team is setting yourself up for failure.
Hire a legal team so they can handle all legal matters while you focus on the profit-making aspects of your business. It’s a decision you’ll never regret for your business’ lifetime.
Did you enjoy this post? For other informative pieces, be sure to check out the other articles on our site.