Advantages Of Hiring A Business Lawyer When Starting Your Company

0
65
Advantages Of Hiring A Business Lawyer When Starting Your Company

Advantages Of Hiring A Business Lawyer When Starting Your Company

Starting a company can be a daunting task. If you have doubts about whether you’re doing everything the right way, hiring a lawyer to draw up your company’s bylaws and handle other legal concerns is an excellent investment in your future and peace of mind. One of the most common legal concerns while starting a business is whether there will be any problems with your company’s bylaws. Since different state laws concerning the formation of a company vary widely, it is important to find out as much information about your state’s laws as you can before forming your business. If you operate a business that requires formal business law, such as a corporation or limited liability company (LLC), a lawyer is an excellent resource to guide you.

Choosing a Suitable Business Structure: 

The first step to forming a company is choosing the type of business you want to run. If you decide to start a limited liability company, the next step is drafting or having a lawyer draft your limited liability company’s operating agreement. A business lawyer can also help you decide whether it is better to operate your business as a corporation or an LLC. A corporation is a separate legal entity from the shareholders of the company. This differs from an LLC which does not limit the liability of the owners but does provide a tax advantage by not taxing its profits.

Prevent Lawsuits:

A business lawyer can help you draft a shareholders’ agreement and protect your assets. The shareholders’ agreement is a document that sets out how the company’s assets are to be managed, how profits are to be shared and who will be able to sue the company. A lawyer can also draft waivers, or releases, that protect you from being sued more than your ownership percentage. A business lawyer may also advise you regarding employment agreements that outline the terms of your employment with the company.

Drafting Contracts:

A business lawyer can help you draft contracts that protect you from the risk of loss and can also serve as the contract’s negotiator. For example, if your business requires a contractor for an upcoming project, a lawyer can ensure that terms of payment and payment schedules are drafted into the contract. The lawyer may also help you draft employee agreements, which outline both the responsibilities of your company’s employees and their related compensation.

Protect your Intellectual Property:

Protecting your business’s intellectual property can be a major challenge. A business lawyer can help you take steps to protect your business’s ownership of its brand name and any logo, patent or copyrightable material. This will not only help you prevent others from using your company’s intellectual property but will also ensure that the intellectual property is protected if you decide to sell it. A lawyer can advise you on the process of trademarking a brand name or logo and may be able to walk you through the process of patenting original inventions.

Real-Estate Leases and Agreements:

A business lawyer can help you evaluate whether it is in your best interest to lease or buy a commercial or industrial property your business uses. Lease agreements are also a legal concern if you will be subleasing space in a building you own. A lawyer can advise you on drafting the lease agreement and negotiating with tenants or sublessees. Another aspect of commercial leases is an assignee clause which specifies whether a tenant has the right to assign their lease agreement to someone else.

Negotiation:

Business lawyering can also include negotiating the terms of a contract or a lease agreement. While some contracts are negotiated through a business lawyer, other contracts are completed by both parties separately and then brought to a lawyer for review. If you do not have the time or expertise to negotiate your company’s contracts, your business lawyer can assist you in determining the terms of your contract and determining whether any legal pitfalls could be detrimental to your business’s ability to execute its business plan.

Tax Issues:

A business lawyer can also advise you on any tax issues that may arise. Tax laws are extensive, and some businesses may be subject to additional tax requirements, including state sales taxes and the federal corporate income tax. A lawyer can help your business avoid these and other taxation requirements regarding your business’s formation, operations, earnings and sales.

Employee Issues:

A business lawyer can advise you on the potential employment issues your company may face. A lawyer can help you draft employee agreements that state your company’s policies and establish a disciplinary process. If you have employees working offsite, a lawyer can advise you on determining whether the company is subject to workers’ compensation laws and what steps need to be taken in the event of an accident or other workplace emergency.

Incorporation:

At the beginning, you need to know the steps that you have to take to incorporate your company. A business lawyer can be a key player in helping you establish all of the required fundamentals, such as recording your Articles of Incorporation with the Secretary of State’s Office in your state. The lawyer can also help you register your business with the Internal Revenue Service (IRS) and state taxing authorities.

Funding:

Funding for the company needs to be secured with a proper financial plan. Even when the business is started, the lawyer will help you coordinate with banks and other financial institutions, who may require an independent audit of your company’s books and records. The lawyer will also help you meet your company’s bank account requirements. At this point, the lawyer will discuss how to apply for a Certificate of Incorporation or similar document that grants your business legal status.

Conclusion:

Choosing your business structure is a major step in forming a company. Hiring a lawyer to help you decide whether to form your company as an LLC or corporation will help ensure that you are doing everything correctly. It is also wise to have your lawyer evaluate your business structure and draft bylaws or operating agreements with your input before considering any legal advice. Your business lawyer can also advise you on the best way to protect your intellectual property and how to negotiate the terms of your business contract.