Starting a business can be both exciting and daunting. Between figuring out what is needed and learning on the job, thinking about hiring a business attorney may be the last thing on your mind. But the truth is, you cannot have one soon enough. Here are six reasons why your startup needs an attorney before you even start.
Liability
Buying and selling goods and services come with a host of liabilities for your fledgling company and potentially you personally. Business law attorneys can help you navigate the various risks your new company is likely to face.
Hiring one ahead of a lawsuit can save you money, time and headache. Finding a qualified attorney in the middle of litigation doesn’t give you time to properly vet the lawyer. Obtaining one ahead of time, let’s you find one that understands your business and works to protect you and the company.
Paperwork
No matter what type of business you start, most states require a host of legal paperwork. Various licenses, forms, and permits must be filed properly depending on the industry and municipality. Some local governments require the business to be properly registered to even obtain necessary permits and licenses.
Contracts
Unlike government paperwork that is required, contracts come from both your business and other businesses you work with such as suppliers and commercial leasing companies. Having your attorney look over the various contracts can help you understand exactly what you are signing. The more information you have up front, the lower your risks of a lawsuit.
Employees
Growing your business means hiring additional staff to take on some of the workload. A solid employee handbook and signed contracts can help lower liabilities.
Taxes
How you set up your company can have an impact on how you pay taxes and how much you owe. An attorney can show you the different avenues available to you and their impact on your and the company’s finances.
Capital
When you need to raise funds, there are a variety of ways to obtain capital via traditional means such as commercial bank loans or through non-traditional avenues such as venture capitalist firms.
Many of these avenues require a host of paperwork before you even meet with the potential investors or loan company. A business attorney can help you navigate the various avenues to obtain capital and what you need ahead of time.
There are so many things that go into running a successful company. It is important to start your fledgling startup on the right note. A business attorney can help you keep your company in good standing with the law, lower your liability and help you grow your business.
