From business registration to securing funding, startup owners have a lot on their plates.
To comply with the local legal requirements and ensure your company’s uninterrupted growth, you need to hire a business attorney.
Here are six reasons you need a lawyer when starting a business.
1- Choosing the Right Business Structure
One of the first steps you need to take is choosing the business structure.
For example, you can choose between a limited liability company (LLC), a sole proprietorship, a partnership, or a corporation. Each of these business models comes with specific legal and tax requirements.
A business lawyer can explain the basics of each business model and help you make the right decision for your startup.
2- Complying with State and Federal Laws
Before your business starts operating, you need to meet multiple legal requirements. Some of them are registering your business, applying for a federal tax ID number, obtaining business permits, or filing for business taxes.
Moreover, different states have different laws. You need to understand local legal regulations and comply with them. The process can be very stressful and time-consuming for anyone outside of the legal industry.
An experienced lawyer who knows state laws will do the legwork for you. They will cover the legal aspects of business registration for you and help you avoid penalties.
3- Courtroom Representation
An experienced lawyer presents your company’s values and protects its interests in court. They can guide you through the legal process towards achieving the best possible outcome.
That is why you need to hire an attorney that understands your industry. Most importantly, you need to find the right type of lawyer for your case.
For instance, say one of your employees has violated the traffic law while driving for work in Miami. In that case, you would need to hire an attorney that understands the local traffic regulations. Traffic lawyers Miami can notice any errors on the ticket and dispute them. Remember, even the slightest stain on your company’s reputation may affect its future relationships with investors and customers.
4- Creating Contracts to Protect your Business
As a startup owner, you need to create contracts for any agreement that involves customers, employees, partners, suppliers, and shareholders. These legally binding documents outline business relationships and support your company’s interests.
For example, say you are starting a business partnership with a family member or a friend. In that case, a well-structured contract ensures all parties are protected if you decide to dissolve the partnership or sell the business.
5- Managing Employee Relationships
Regardless of how engaged and satisfied your employees are, conflicts are sometimes inevitable. When left unaddressed, they can cause multiple performance and legal issues.
That is why you need to have a legal advisor to back you up.
For example, when expanding your team, you will need to develop an employment contract. It specifies the elements of the employment, such as its duration, employee benefits, and compensation.
Hiring a business attorney when dealing with work termination is essential. That particularly applies to employment contracts that do not end amicably.
Finally, a lawyer can help you build your internal company policies and draft employee guidelines. An employee manual should explain your company’s policies, such as remote work, dress codes, and paid time off. When communicating company requirements transparently, you will minimize conflicts.
6- Filing for Patents
Do you have any unique business ideas or inventions? To protect your intellectual property in the years to come, you need to file for patents. A patent gives you the ownership of the invention, meaning no one can use it or take credit for it.
While filing for a patent safeguards your company’s products and services, it is a long and complicated process. You will need to identify the patent type you need and look for a patent and trademark office in your area. Next, you need to file a provisional patent application.
A reliable local business lawyer can facilitate the process. They can file the documents required on your behalf. Most importantly, they help you prevent expensive mistakes during the patent registration process.
Over to You
When hiring a business lawyer, always make sure they have at least a basic understanding of your industry. Most importantly, evaluate their communication with you. They should be honest, transparent, and available 24/7.
I hope these insights will help you understand the value of a business lawyer for your startup. Should you have any thoughts or questions, feel free to share them!