Generally speaking, when people want to start a small business, they pay attention to marketing, operations, and advertising matters. More often than not, they tend to forget the legal aspects of starting up a small business, which requires the assistance of a legal professional. Although some legal issues may not be the primary concerns of several small business owners, there are ways that they can be helpful when setting up the company.
Thus, if you’re planning to start up a small business, here’s how a lawyer can help you from the get-go.
Decide on the Best Business Structure for You
Choosing the best business structure can be one of the essential decisions you should make when starting up a small business. That’s because it comes with wide implications for its success, especially in terms of handling personal assets, taxation, and a smooth transition of the business during an ownership change.
Because of this, it’s crucial to have a lawyer by your side to help you decide on the best structure for your business. Whether you choose sole proprietorship, partnership, limited liability company, or S corporation, you need a legal professional to explain to you the pros and cons of each option. They’ll also assess your business needs and make sure the structure you pick won’t expose you to further legal troubles in the future.
Guide You in the Compliance of Licenses and Permits
Just like other businesses in the market, starting up your small business requires you to comply with the necessary licenses and permits before you can officially operate and open to the general public. However, license and permit requirements can be complicated and challenging.
Fortunately, with the assistance of a great business lawyer, you don’t need to figure these matters out on your own. They can help you determine your primary obligations as a small business owner under the law as well as come up with a plan to ensure you obtain the required licenses and permits for your small business.
Protect You from Any Liability and Other Related Crimes
In most cases, many small business owners believe that hiring a lawyer is unnecessary from the very beginning. But in a world where several businesses are facing criminal charges due to corporate liability, financial crimes, fraud, workers’ abuses, and many more, it’s also best to have an experienced defense attorney right from the moment of setting up the small business.
Also, just in case you find yourself and your business being charged for a crime or liability, you can work with this legal professional to protect your business in the long term. They can create a strong and solid defense strategy to dismiss and if not, reduce the criminal charges against you or your business. They’ll also become available to assist you in the different stages of your case, from the filing of paperwork and criminal investigation to trial.
Help Draft Business Contracts and Agreements
In the world of business, contracts and agreements are essential because they serve as records of commitments between the small business and the other parties involved. These official documents are considered a visual representation of the relationship and protection in the event the commitments agreed upon aren’t met by any of the parties.
Thus, due to the importance of contracts and agreements in a small business, it’s vital to hire a lawyer who can assist you in the creation of these documents. For instance, the following are the contracts and agreements that a legal professional can draft to help your small business:
- Contracts for Space, Services, and Supplies: Since you need to partner with different service providers and suppliers for the operation of your small business, you need to execute a contract for all the transactions you’ll be making with them. That way, you’ll be able to outline all the matters agreed upon which intends to protect your small company in case of breach of contract by the other parties.
- Employment Contracts: Setting up a small business also requires you to hire some employees who will work for you in exchange for the payment of wages, benefits, and other forms of compensation. Since their recruitment involves a monetary consideration, it’s important to execute employment contracts to indicate all the terms and conditions of their employment with your small company. These contracts can also safeguard you and the employees concerned in case of a breach.
- Non-Disclosure Agreements: In case the business you want to set up involves unique business ideas and trade secrets, it’s also vital to have these agreements in place to protect the interests of your small business. Also, drafting these agreements means you don’t need to worry about having your vital business information stolen.
The Bottom Line
With the information mentioned above, it’s clear how a lawyer can help you with the legalities of setting up a small business. Thus, whether you need help in deciding the best structure, drafting contracts and agreements, protecting your business against potential criminal charges, or compliance with the licenses and permits, having a legal professional on your side can be of great assistance. In doing so, you’re able to establish your small business that maximizes profits and minimizes financial liabilities.