One of the keys to avoiding legal problems in your business is knowing when to use a lawyer for certain matters. After all, seeking legal help to avoid problems is much better than seeking it to fix them. Here are some key areas where your business will benefit from having a lawyer’s help.
Choosing the Business Form
A question for every business is what structure to use: a sole proprietorship, corporation, partnership or limited liability company. The answer depends on several factors, including trying to limit personal liability, whether there are multiple owners, who will be in charge, how profits will be shared and tax issues. The right business form differs for each person and business. A lawyer can advise you on the benefits of each type of entity as it relates to your business, and help set up the form you select.
Choosing and Protecting Your Business Name
Every business wants a meaningful name. You want a name that doesn’t infringe someone else’s and that you can stop others from infringing. When chosen, do you use the tm or ® label? A lawyer can help you navigate the complex subject of choosing and protecting your company name.
Preparing Agreement with Co-owners
If you have co-owners, it's vital to have a written agreement addressing the parties' rights and responsibilities. The agreement should cover many issues, including who will manage the business, how key decisions will be made, how profits are split, who will put in more money if needed, and what rights each owner has if someone wants to sell his or her interest. Depending on the business form you and your co-owners select, this can be done in a partnership agreement (for partnerships), shareholders agreement (for corporations) or operating agreement (for limited liability companies).
Preparing or Reviewing Your Lease and Other Major Contracts
Your lease, supply and distributor agreements, invoices and purchase orders are contracts that affect the success of your business. A good supply, invoice or purchase contract can help protect your rights by stating payment provisions, warranties and other terms you want to apply when you buy or sell goods. This reduces the risk of claims and provides terms that will help you if a claim occurs. A lawyer can draft these contracts in order to get you the best protection.
Proper Treatment of Employees
Today so many laws protect employees, it's impossible to know them all. Minimum wages, maximum working hours, overtime, occupational safety, and protection against discrimination are just a few. It’s easy to break the law in hiring, firing, promoting or simply asking employees to do their jobs. A lawyer can help prepare your employment applications, employee handbook and other employment-related documents as well as guide you through the maze of laws and regulations to help avoid violating a worker’s rights.
Protecting Company Secrets
In today’s economy, protecting business information is vital. A lawyer can help identify which information of your business qualifies for trade secret protection and steps you can take to protect it, like confidentiality agreements, confidentiality notices and other trade secret protection steps tailored for your company.
Raising Money
Whether you are raising money from friends and relatives, obtaining a bank loan or getting venture capital funding, it is vital to have the loan or other documents prepared by a lawyer. If the other side prepared the documents, at a minimum have them reviewed by your own lawyer. Your lawyer may be able to add terms to protect you and limit your liability.
Resolving Disputes
Some business owners who are involved in a dispute with a supplier, customer or other person or business wait until they get served court papers -- or want to serve court papers -- before contacting a lawyer. But seeking a lawyer's help as soon as you suspect a potential legal dispute can save you a lot of money and aggravation in the long run, as your lawyer may be able to find a solution that avoids a lengthy and expensive lawsuit.
Succession Planning
If you want to pass ownership of your company to children or other relatives, a lawyer can help. This may involve transferring part ownership now or structuring an estate plan for a smooth transfer to your spouse and children.
Complying With the Law
Federal, state and local laws contain regulations specific to almost every kind of business. Some activities are legal in some places or times, but illegal at others, unless the owner has all the required permits or licenses. Licenses are needed for many kinds of business activities, like selling real estate or insurance, offering investments or conducting banking. Permits are needed for many business ventures, including restaurants, dry cleaning or pest control businesses. If you fail to get a required permit or license, you may be fined or a government agency may force you to close. A lawyer will help you understand the laws and regulations that apply to your company, and how to comply with them.
Risk Analysis, Assessment and Management
Being in business makes disputes inevitable. Disputes can arise with customers, suppliers, employees and even co-owners. A lawyer will help you identify areas most likely to be the source of disputes, and how to manage them with contracts, the right insurance and other tools.
Closing A Business
Just as there are many legal matters to handle when you start a business, there are also legal matters to take care of when you close a business. To avoid further liability (including possibly personal liability), the entity needs to be closed down in accordance with certain legal procedures and tax and other outstanding liabilities must be resolved.
These are just some of the areas where business owners can benefit greatly by having a lawyer's help. When deciding whether a lawyer should handle an issue involving your business, consider the nature of the issue, the complexity of it, and the impact on the business and your personal liability if something goes wrong.
Contact an attorney at Triscaro & Associates today. Please call us for all your legal needs. We offer a full range of legal services to individuals, families and businesses, including personal injury, estate planning, real estate, family law and business matters. We are dedicated to providing the highest quality legal services at a reasonable cost.