Over 30% of all businesses face a lawsuit each year. It can happen for a variety of reasons, but the most common one stems from not filling out the proper forms when registering the company.
There’s so much paperwork that you have to deal with during the startup process that it’s easy to forget something vital. That’s why you need a lawyer.
Having a skilled attorney on your side will ensure that your company stays compliant with state laws from the time you open your doors to the time you close them when you finally retire. Check out this guide to learn more.
Choosing Your Business Structure
One of the first things you’ll have to do as a small business owner is choose your structure. You can go with a sole proprietorship, partnership, or LLC.
You’ll find a lot of great info about these entities on your secretary of state’s website, but it’s no replacement for having a lawyer beside you. They can answer any burning questions you have and help you pick the right option for your company.
Forming Contracts
There will come a time during the life of your business when you have to form a contract with someone. This could be an employee or even another company.
You’ll have to make sure that the paperwork is as clear as possible. There can be no room for ambiguity when it comes to payment and work details.
There are templates online that you can follow. When you finish drawing up the contract, however, it’s a good idea to let your small business lawyer look over it. They’ll fix any mistakes you make and help you cover all your bases.
On the flip side of this, you should also have them check any paperwork that a client puts on your desk to sign. The last thing you want is to get caught up in a scam.
Patenting Yourself
When you’re writing up your business plan, you’re going to come up with your trademark and your logo. They need to be unique to your company, so you’ll have to do your research to make sure you’re not borrowing from another business by mistake.
Once you’ve decided on your trademark and logo, you have to patent them if you don’t want someone to steal them from you. This process is too complicated and expensive to attempt on your own. Hire a lawyer with a strong background in patent law.
Hiring and Firing Employees
Hiring an employee involves a lot of paperwork that a lawyer can help you with. You’ll need to give the newbie an employee handbook as well.
While it’s easy enough to make your own handbook, you should allow your attorney to skim through it. You can get in a lot of trouble if it doesn’t comply with state laws.
You should also reach out to your attorney when you need to fire an employee. They can walk you through it in a way that will help you avoid a lawsuit.
Handling Lawsuits
Let’s say that an employee does hit you with a lawsuit. It’s an expensive process that can halt your business operations if you’re a startup.
A lawyer might be able to come up with a solution that will benefit both parties and prevent things from going to court.
Collecting Debts
You’ve reached out to one of your clients for payment without it bearing fruit. You’ve tried being patient with them, but they’re over a month late.
This is a problem that almost every business faces at some point. A lot of times, having your lawyer send a notice letter to the client on your behalf will be enough to motivate them to give you what they owe.
If that doesn’t work, you’ll have no choice but to take them to court. When that happens, you’ll need a lawyer there to plead your case so you can get paid.
Filing Taxes
Filing taxes is the worst part of being a small business owner, but it’s a necessary evil that you can’t avoid. If you don’t file them correctly, the IRS won’t exactly be pleased with you. You could end up having to pay some pretty hefty fines.
A lawyer will sit down with you and tell you which tax deductions you can take advantage of. They’ll also help you file on time and make sure you don’t make any mistakes.
Keeping You up to Date With Changes
The world of business law is always changing. It can be hard to keep up with it while you’re also trying to run your company. That’s where your lawyer comes in.
It’s their job to stay up to date. They can navigate you through the legal world and stop you from violating any important laws.
Refer You to a Specialist
If you find yourself in a complicated situation, your regular business lawyer might not be able to do anything for you.
The good news is that your attorney will recognize that and refer you to a specialist who can help.
You Need a Lawyer to Help You Fight for Your Business
As you can see, you need a lawyer for your company. Hiring one might be expensive, but they can stop you from getting tangled in an even pricier lawsuit.
They can also assist you with your taxes, help you choose a business entity, and help you collect debts.
For more tips that will keep your doors open, visit the Business section of our blog.
