Congratulations! You’re starting your own business. Or at least you’re thinking about it.
Everyone from your best friend to the teller at your bank will give you advice.
Your business name. Your logo. What products you should sell.
You’ll talk to graphic designers, marketing gurus, and people who can help you choose the best office furniture. The list goes on and each professional has something you need for a successful business launch.
Designing logos and business cards is fun. So is setting up your office space and putting together your product line.
But have you thought about how you’ll pay your taxes? Or where you get legal contracts? If you’re a creative how will you protect your work?
These are all things most business owners try to do themselves but miss important details. They put themselves at risk when an attorney could have helped.
As a small business owner, you can avoid many problems if you retain a small business attorney.
We’ve made a list of 8 reasons why business owners should hire a lawyer. Read through the list before you open your doors for business. It could help you avoid serious problems down the road.
- Business Structure
Choosing your business name and logo is the fun part of starting a business.
Unless you’re fascinated by all things business, deciding on the business structure may not feel inspiring at all. Business structure, you say, what is that?
The business structure is the way your state and the Internal Revenue Service (IRS) recognizes your company or organization.
In short, your business structure determines how much paperwork you file and how much you pay in taxes. The business structure also affects your personal liability as it relates to your business.
Business structure types include sole proprietorship, partnership, and limited liability company. There are others but these are the most common.
Even if you know the difference between a sole proprietorship and a limited liability company, do you know which is best for you? A small business attorney can help you decide which business structure best fits your business goals. Your attorney will also help you file the correct paperwork with your state and the IRS.
Speaking of paperwork, it won’t take before you have more business documents than you ever dreamed of, and your attorney is an excellent resource for assistance with the growing piles of paper.
- Contracts and Other Business Documents
Long before you secure your first customer you’ll likely have signed many contracts. Other documents you’ve probably signed include invoices, work orders, and maybe an application for a small business loan.
Contracts are legal and binding documents. When people sign contracts not approved by a lawyer they risk legal problems.
You can find DIY contracts and other business-related documents all over the internet. Not all are properly written. Wording and missing information are common on DIY business documents.
If you have a DYI contract template saved on your computer, consider not using it. Instead, let a small business attorney look it over first.
In addition to advising you on contract law, a good business attorney can help you learn more about incorporation.
- To Incorporate or Not
Have you thought about whether you should incorporate your business?
There are certain advantages of business incorporation. Protection of personal assets and tax flexibility are two reasons why you might consider incorporation. Incorporating also has certain disadvantages.
An attorney can discuss both advantages and disadvantages and help you decide if incorporation is a wise decision.
If you do choose incorporation There’s more to it than filling out an online form, paying a fee, and printing out your articles of incorporation. A lawyer ensures correct filing of the articles of incorporation and other related paperwork.
You’ll encounter lots of different document types but what will you if one of them is paperwork about a lawsuit?
- Representation in Court
No one starts a business thinking about future lawsuits but they do happen to good business owners. Bad business owners also get sued but today we’re assuming you’re one of the good girls in business.
As a business owner, you may become involved in more than one type of lawsuit.
For example, if an employee or customer gets hurt on your business property, they could file a personal injury case against you. If you sell food products and a customer has an allergic reaction after eating something purchased from your business, they might sue you.
The cost of a business liability lawsuit starts at around $54,000. Contract disputes can cost a small business owner up to $91,000.
Another reason you could need a lawyer is if you purchase a business from someone else, or want to make sure your heirs don’t experience difficulty settling your business affairs if something should happen to you. For this type of legal protection, you need a probate attorney rather than a small business lawyer.
A business litigation attorney also assists small business owners when they have legal issues with employees.
- Employee Relations
As your business grows, you may consider adding employees to your team. Employees are a wonderful asset but they sometimes create issues for business owners. Avoiding issues is the best way of handling them.
Your attorney can help draft contracts and agreements for both regular employees and independent contractors. An attorney is helpful during the hiring process and if the employee or contractor doesn’t work out, your attorney can help with a safe and legal separation.
One issue you might not have considered when thinking about employees, and your business in general, is your intellectual property.
- Protection of Intellectual Property
Many women own creative businesses. Whether you’re a writer, artist, musician, web designer, or a creator of beeswax candles made with a proprietary process, you have intellectual property.
Theft of intellectual property happens all the time, especially when there’s no copyright or trademark in place.
Protection of intellectual property is normally handled by an attorney who focuses solely on that area of law practice. Your small business attorney can likely refer you to a specialist.
- Real Estate Transactions
Another area where a small business attorney helps business owners is real estate transactions.
Leasing commercial space isn’t the same as renting an apartment or a house. Yes, you pay a security deposit and rent and the lease usually has a definite start and end date. But as a business tenant, you may also modify the property, display advertising, and/or manufacture products.
Real estate contracts for businesses are complex. They’re also negotiable. A good business lawyer not only thoroughly examines the business lease, but they can also negotiate more attractive terms for you.
If you’re purchasing office space or a retail location, working with an attorney isn’t just necessary, it’s invaluable. And when the time comes for ending your love affair with your business, your attorney will be helpful with that too.
- Selling the Business
You may adore your small business but that doesn’t mean you’ll keep it forever. Many business owners grow a successful business and then sell it so that they can start a new business. Others decide they’d rather do something else altogether.
Selling a business, or buying one for that matter, is a complex transaction.
First comes a valuation of the business. You’ll need various documents drawn up including a purchasing agreement. Some business acquisitions include the transfer of permits or licenses.
Lawyers don’t usually advise clients about strategic marketing techniques that help your business grow. But they can talk to you about the ins and outs of selling your business. Hiring a business attorney ensures the sale closes without any legal issues.
Get to Know a Small Business Attorney
You didn’t realize how much an attorney can help a small business owner, did you?
Developing a good relationship with a small business attorney is a good practice and one that will pay off over the life of your business. Whether you need help drafting contracts, signing a lease, or hiring employees, an attorney can make your business life easier.
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