Too many business owners treat a call to a business law attorney as they would a call to the fire department. They wait for a fire to break out before making the call. However, as with a fire, it may be easier, less costly, and cause less damage to your business to take preventative measures instead of waiting for the smoke and flames.
Thanks to the internet, even mom-and-pop businesses have the ability to operate on a global scale. An attorney provides services that can prevent problems for your business by anticipating legal issues and developing a plan to avoid or handle them before they cause damage. Here are five ways an attorney can help your business.
Assist with Formation of the Business and Selection of its Structure
Operation of a business may expose its owners and their personal assets to liability, but it can be limited by the type of business structure chosen when starting it. As a general rule, the sole proprietorship and partnership structures provide the least amount of protection for their owners against personal liability while limited liability companies and corporations offer the most.
When you operate alone or with a partner, you are the business. Creditors can look to you and your personal assets to satisfy debts and financial obligations. Someone injured in an accident related to business operations may sue a sole proprietor or partners personally to recover damages.
Formation of a corporation or limited liability company creates a legal entity separate and apart from you to operate the business. A business law attorney helps you choose and set up the structure of your business to ensure that it complies with legal requirements in your state.
Ensure Compliance with Corporate Governance
The protection against personal liability offered by a corporation or limited liability company can be lost unless its formation and operation comply with specific legal requirements. An attorney with a solid background in business shows you how to fulfill legal requirements of a corporation, including:
- Scheduling and conducting annual meetings of owners and directors.
- Maintaining accurate minutes of annual meetings.
- Election of officers to oversee day-to-day business operations.
The attorney will show you how to operate the business so as to maintain the separation between you and the corporation or LLC. For example, using the business bank accounts to pay personal expenses of its owners may give creditors of the business the legal right to bypass the business entity and personally sue the owners.
Legal Advice and Guidance When a Business Hires New Employees
The advice and guidance of a business lawyer can be essential when the time comes to hire employees. Not only can it help you to comply with state and federal employment laws, but the lawyer can prepare employment agreements that include non-disclosure and non-compete clauses to protect your business when employees quit or are terminated.
Protecting Intellectual Property
The time and money spent choosing a name for a business and building a brand through its website can be lost unless you take steps to protect them and other intangible assets from theft by competitors. A business law attorney helps with copyright, trademark, and patent registration to protect the intellectual property belonging to your business and can provide invaluable assistance when negotiating for its sale and acquisition.
Taxes and Regulatory Compliance Advice and Representation
All businesses from a small one-person operation to major corporations have at least one thing in common: they all must comply with local, state and federal tax and other laws pertaining to their businesses. Companies doing business in multiple states, such as those engaged in online sales, must deal with multistate taxation and regulatory compliance issues.
A lawyer with experience in business law can advise you about the tax laws and government regulations that apply to your business operation. Anticipating compliance issues and developing a compliance strategy avoids violations and the costly penalties that come with them.
Legal Advice Is Essential to Your Business
A consultation with an attorney experienced in business law provides the advice, guidance, and representation needed to avoid costly mistakes. Instead of waiting until you need to put out fires, let a business attorney help you to avoid them.
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