When you own and run a business, you can rapidly become overwhelmed with details within and outside your area of experience. You may need to become more familiar with legal issues, especially if this is your first time running a company. You can quickly find yourself out of your depth when there are high stakes, and your need for an attorney only becomes more pronounced as your business grows.
A business law attorney is a legal professional who provides legal advice and guidance to businesses and entrepreneurs. They are well-versed in the complexities of business law and can navigate the legal landscape of running a company. From startup formation to contract negotiations, a business attorney can be a valuable asset to your business.
You can partner with a business law attorney as you grow and run your business. Their job is to protect you from liability and make your job easier. You can feel comfortable handing specific details over to your business lawyer, and they will give you timely advice and provide you with the advocacy you need when you end up in disputes. To understand why you need a business lawyer, you must know what they do and how they can help you.
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Helps You Establish a Business
How you start your business makes a difference in whether you can achieve success. You will make many critical decisions at the outset that can set the tone for the future. Before you even launch your business, you will likely need legal advice from a business lawyer. They may help you decide on the structure of your business (for example, whether you want to incorporate as a limited liability company or a partnership). They will also draft and file the necessary documents with the appropriate state agencies.
Your business law attorney can also give you advice on other vital documents and agreements that you will need at the outset of your business, including:
- Corporate bylaws
- Employment agreements
- Articles of incorporation
- Operating agreements
- Shareholder agreements
Lenders and other investors will closely review your business structure and commitment to corporate governance before giving you any money. You need assistance from a business law attorney to make these documents look as professional as possible and create the conditions for future success.
Advises You on the Early Stages of Your Business
As your business grows, you may encounter legal issues you have never seen before. You may be hiring employees or dealing with vendors, and you need practical advice about the legal aspects of these issues. It may be some time before you are more comfortable in your business and have more knowledge of the potential legal problems. You should still rely on a business law attorney even when your business grows. Their efforts can be cost-effective because they will enable you to focus on what you do best: growing your own business.
At some stage, you may need to raise capital, whether it is through a loan or by selling stock in your company. These arrangements are legal agreements that need the assistance of a business lawyer. A business law attorney can work with your investment banker as you seek to raise capital and handle other issues that businesses encounter during the start-up phase.
Drafts and Reviews Contracts
Contracts are the lifeblood of any business. You will likely have many agreements that govern practically any business relationship, whether it is with suppliers, clients, or employees. If you do not have these agreements in writing, your business can be in significant legal jeopardy. The terms of a contract protect you when there are any disputes between you and the other party.
Every word and comma in a contract is significant because what you agree to in writing controls your relationship. If there are any disputes, the first thing that a court will do is review the exact language of the contract. They will only have to interpret the language or review external evidence if there is any ambiguity on paper.
Drafting and reviewing contracts do not lend themselves to a DIY approach. If you make a mistake, you can have unfortunate consequences and potential liability, and the agreement may not protect you when needed.
You should have a business lawyer draft any contracts that you want to use in your business. They can help you understand the legal implications of the agreements you enter into and advise you on the best course of action. Your attorney can also use their experience to ensure that the contract's language will protect you when needed and can also review any contracts before you sign them. Your business attorney can suggest any necessary changes and negotiate with the other party's attorney to make any revisions required to protect you.
Navigate Corporate Transactions
As your business expands, you may consider certain corporate transactions and have an interest in purchasing a competitor or a division of theirs to grow. You may even consider selling your business entirely when you decide the time is right.
Corporate transactions are very complex. Not only is there a transaction agreement, but numerous other approvals may also be needed for the deal. Your attorney can negotiate the terms of the contract and structure it so it meets your needs. Then, they can shepherd you through the deal process and help you overcome any snags that arise that threaten to derail the transaction.
Acts as Your General Counsel
Your business may be in its infancy, and you certainly may not have the budget to hire a dedicated attorney who will be on your payroll. However, you still need legal services at this early stage of your business. Your legal issues may develop and grow as your business matures, but you may still not have enough money to hire your own internal general counsel.
A business lawyer can partner with you and act as a general counsel if they work with you by getting to know your business and anticipating legal issues. They will develop a familiarity with you and your business to be effective in that role. Many companies will choose to outsource their general counsel function until they have the budget to make their internal hires. Even when you hire general counsel, a business lawyer can work with them when legal issues arise that require some outside experience.
Litigates and Helps You Resolve Disputes
Your business may invariably end up in disputes over time as it grows. You are dealing with many different parties, and you can disagree over your relationship or your particular agreement. You can even end up in business disputes with competitors acting unfairly and illegally.
Litigation can threaten to derail any business. Controversies can take your time and focus away from generating revenue. In addition, you can end up spending a great deal of money on legal fees before reaching a resolution. Litigation can also result in financial and legal risks to your business. You can end up liable for breach of contract or unfair methods of competition. Thus, you need to get help from a business law attorney to avoid litigation in the first place.
You can contact a business lawyer early in any dispute, and they can resolve it without litigation. They can negotiate with the other party's attorney or engage in alternative dispute resolution to reach an agreement.
Of course, if your dispute ripens into a lawsuit, you need a business lawyer to represent you in court. The stakes can be very high, and you cannot afford to leave anything to chance. Your business law attorney needs experience in a courtroom, and they should provide you with gloves-off and hard-hitting legal representation when necessary. A business law attorney can settle a lawsuit on the best possible terms for you to reduce some of your risk.
Compliance Assistance and Advice
Your business must comply with a large number of federal and state regulations. Failing to follow these rules can open your business to legal liability because the government can take enforcement action that can lead to fines. Some laws even allow private parties to file a lawsuit against you if you break the law.
Compliance efforts enable you to avoid trouble and nip issues in the bud before they can even happen. A business law attorney can ensure you stay on top of problems in the short and long run so you can develop plans to deal with them. They can also draft policies and procedures to comply with the law. Your lawyer can advise you on employee hiring and termination, income and hour laws, and workplace discrimination issues. Moreover, they can assist you in understanding your tax obligations and ensure that your business complies with government regulations specific to your industry.
One of the first things you will be asked for when regulators show up at your door is the policies and procedures you drafted to ensure compliance. Then, regulators will scrutinize your business to learn whether you followed them. You will need these procedures at a relatively early stage in your industry. As your company expands to more areas, you may need to develop additional policies and procedures or strengthen the ones you have.
Real Estate and Property Law
One of the most significant contracts that your business will enter, or purchases that you will make, is the one that secures real estate for your company. You may enter a lease to rent your premises from the owner. Alternatively, you may enter an agreement to purchase property for your business.
Real estate contracts can be far more complex than the average agreement, and they can involve a multitude of complex issues. You must at least have an attorney review the agreement before you sign it. A business lawyer can also negotiate the sales or lease contract and deal with any disputes or issues as they arise. Sometimes, you may discover problems after entering into the transaction and need to take legal action.
Protecting You from Liability
You do not need to wait for litigation to begin to protect yourself from any potential legal issues.
You can anticipate possible problems in the future, and you can take action now to protect yourself from them. A business attorney can conduct a top-down review of potential areas where you may face liability so you can do what is necessary now to avoid future problems.
Your business attorney will use their knowledge of your company and the possible issues that can arise to take a comprehensive approach now that can spare you from problems.
Hiring a business law attorney is an investment you will make in the present and future of your company. If legal issues bog you down without help, your business may sink before it gets off the ground. When considering starting a business, it may be worthwhile to talk with an attorney to help you learn the legal landscape. Then, you can hire them as needed or keep them on retainer when you have issues that require their help and experience. It is better to have an ongoing relationship with one attorney who has worked with you before and understands the ins and outs of your business so they can customize their legal advice.
If your business does not already have a relationship with an attorney, the time to form one is now. It is undoubtedly better to be proactive instead of having to be reactive when problems arise. You will be happy that you got help today when you want it instead of having to scramble when you need it.
Hiring a business attorney is crucial to your business's success and smooth operation. They can provide legal advice and guidance, helping you make informed decisions and avoid costly mistakes. Whether you are starting a new business or need ongoing legal support for your existing one, a business attorney is your go-to partner for all things legal. If you are serious about protecting your business and ensuring its long-term success, consider getting a business attorney on your team.