Entrepreneurs often have questions about whether or not they need a business lawyer. The perception is that many small businesses can’t afford to pay high rates for legal services and don’t have the capital to pay for needed legal services.
Most small business owners don’t hire an attorney because they don’t have the necessary experience to handle specific legal issues and even to know that an issue calls for legal advice. However, hiring an attorney can be beneficial for your business. While it’s generally not essential for a business lawyer to handle every aspect of running a company, there are times when it’s necessary to have one.
Written Agreements
One of the biggest mistakes many entrepreneurs make is not having an agreement with their partners because they’re friends. This is because they think it’s not needed due to the friendship. However, an agreement with your partners is critical to ensure you’re not caught in a bad situation. Having an associate or shareholder’s agreement is also vital to ensure you’re not caught in a legal mess.
It’s Time to Hire Employees
Before you hire an employee, make sure that you have a valid work contract. A contract that includes various clauses and clearly sets forth the expectations for both parties is also essential to protect you from potential legal issues. These protections may include non-compete clauses and other restrictions that protect your intellectual property.
Dealing with a Lawsuit
One of the most common types of lawsuits that can be filed against a company involves an employee who has suffered a workplace injury. If you don’t have the proper resources to hire an attorney, you might be paying a considerable amount of money to defend the claims. Also, having legal advisors will help ensure you have necessary protections in place such as worker’s compensation insurance that will protect a situation such as this one.
Tax Concerns
Getting it right on taxes is very important for any business, as it can put the company in financial and legal jeopardy if taxes are not properly addressed and filed. The government has a lot of power when it comes to enforcing its laws, and if you don’t pay taxes, you could end up getting caught in a legal mess. Trying to navigate complicated regulations can be very time-consuming and challenging for small businesses.
Mergers and Acquisitions
Mergers and acquisitions are usually very time-consuming and require a lot of planning and thought-out execution. However, they can also come with various legal issues affecting your business. Having the proper legal documents can help you avoid potential problems if the determination is made to consolidate your company with another.
If you are pursuing a business venture, it can often seem that starting your venture is not the time to hire a business attorney and get proper legal advice, but ironically, it is one of the most important times to seek out legal advice. Build a strong foundation for your company, as you build and grow, by getting the legal advice you need.