Starting or growing a new business can be a hopeful and thrilling experience. However, there is more to operating a business than making money. Several potential pitfalls can hinder your ability to find success. There are several situations when you should consult a business law attorney.
Changing Business Type
You may choose a sole proprietorship or LLC when forming a new business. These are simple for someone to create on their own. However, as your business grows, you may want to convert it into a partnership or corporation. Tax and licensing changes occur when you convert your business from one type to another. When you consult a business law attorney, you can learn about these changes before you commit to a new business entity type. That way, you can make the best choice for the future growth of your business.
Signing Contracts
Never sign a contract without reading it in its entirety. This applies to employment contracts, leases, vendor service contracts, or sales contracts. A business attorney will become invaluable, as they can read and interpret the contracts for you. They can also write contracts for your business to use. This standardizes your contracts, ensuring you have consistency across your operations. It can also make business negotiations easier. For example, if you have a service contract already prepared, many clients will simply sign it or ask for minimal changes. Working with a lawyer ensures all of the terms you want to get included and terms you don’t want are not included.
Signing a Commercial Lease
While you may have experience with signing a residential lease, they are nothing like a commercial real estate lease. These leases are significantly more complicated, with extensive terms that can impact the tenant business’ operations. Signing a lease and not understanding the terms can result in extensive unexpected costs or limits on business activity.
Hiring Employees
Once a business hires employees, they are subject to labor laws. Running afoul of these laws opens the business up to employee lawsuits and government fines. Consulting with an employment or business attorney can help companies to avoid these pitfalls. Some of the areas that a business lawyer can help with when hiring employees include:
- Wage laws
- Wrongful termination
- Workplace safety
- Discrimination laws
Protecting Intellectual Property
For some businesses, the protection of intellectual property is essential. This proprietary information is essential for giving the business a competitive edge. A business attorney can help establish protections for the business. A business also needs to protect its branding to ensure a competitor doesn’t encourage on hard earned goodwill and recognition. A business attorney can help by filing for trademark, copyright, and patent protections.
Government Law and Regulation
Specific industries are regulated by state or federal government oversight. These regulations are in place to ensure public and environmental safety. Not following these regulations can result in heavy fines for the business. In some situations, the business may even be shut down, or the leadership may face criminal liability. Working with a business lawyer versed in your industry will ensure all applicable laws and regulations are followed.
Selling Your Business
There may come a time when you decide it is time to sell your business. This process is more complicated than simply getting an offer and someone writing a check. Similarly, a merger or acquisition is a complex process that requires a business attorney. A lawyer will assist with performing due diligence, negotiations, and document preparation.
Consult a Business Law Attorney
Working with a business attorney can ensure you set your business up for success. From formation to hiring employees and complying with the law, a business attorney can help every step of the way. While some people avoid talking to a lawyer because they think it is expensive, this mistake can be costly. The consequences of not seeking legal guidance proactively can result in expensive legal consequences.
Schedule a consultation with an experienced business law attorney.
