Most people who have a good idea and not have a lot of cash to start thinking about hiring lawyers immediately. It"s because they feel it"s expensive and can come later in the process when there is something to lose. This is because lawyers are most often associated with those moments when things would go wrong, rather than help things go on the right direction. Here are the top eight reasons why you should hire a lawyer for your business:
Attorneys can make recommendations on the appropriate type of business that your business would best benefit from and build their articles of incorporation. Incorporation creates a very important legal separation between you (individual or individuals within the business) and the business you are starting.
- A lawyer can help finance your business. Financing always poses legal problems due to the mixture of personal and business funds. A company lawyer can help with the funds structure, negotiate the role of investors, and protect you as the primary force of the company.
- If your business must have intentions of issuing shares or even go public, your attorney can start laying the groundwork for the incorporation and the issuance of shares. Your attorney will ensure that each founding member contributes to the business and create a vesting schedule.
- A business lawyer can create a partnership agreement that is fair and legally rigid to protect all interests from the beginning. Just relying on a “handshake" to start a business can create problems in the future as memories fade and emotions come into play. Having a power of attorney document and create a formal agreement is the best way to not only avoid problems but keep friends as money comes into play.
- Employment law is a subset of business law and carries its own set of considerations. Having an attorney facilitate obtaining adequate numbers of IRS workers employed, establish protocols work authorization, and create agreements with employees is vital to keep your business on track and in the right direction. The last thing any new business needs is an audit by the IRS for potential wrong-doing.
- Protecting your intellectual property and brand is vital to the life of your business. Each year, Customs issues a list of counterfeit items seized at borders and is more than 600 billion dollars.
If you want to know more about how business law works, check the video below: