For most entrepreneurs, working with a lawyer is often intimidating and sometimes confusing; especially when it is the first time they have hired one. But, for a startup, having an experienced business lawyer is indispensable. They provide you with the peace of mind that you are covered from any legal liabilities that may otherwise significantly affect your startup business.
Here are a few reasons as to why it is essential for a startup to have a competent lawyer by their side:
Prevention from Tax Ramifications
Entrepreneurs mostly rush into signing important legal documents, such as lease papers, without realizing what tax implications they can be liable to. But with an experienced business lawyer, they can learn about the risks beforehand and protect themselves from tax ramifications down the road.
Choosing the Right Entity Structure
There are several types of entity structures such as Sole Proprietorship, C Corporations, S Corporations, Partnerships, Limited Liability Partnerships (LLPs), and Limited Liability Companies (LLCs). Each of them has its own pros and cons. Without having a complete understanding of each entity and its structure, it can be quite perplexing to determine which one is right for your startup. This is where a business lawyer can be of invaluable assistance, as choosing the right structure can have a direct effect on your bottom line.
Handling Legal Issues
Every startup owner wants to set their ship afloat as soon as possible. But, before they can do that, they have to take care of many legal obligations such as creating bylaws, naming officers, documentation filings, etc. But if you have hired a business lawyer, you will be able to steer your focus on your business, while leaving the worries of legal issues for your lawyer to take care of.
The government authorities put a lot of stress on businesses in the form of taxes, environmental issues, financing, liabilities, and many others. Such compliance challenges are expensive and distracting, and if not given due attention, they can close down your startup before it can even start generating business. Such mistakes can incur hefty penalties, leaving you penniless in the end. That is why you should have a business lawyer that can help you cope with such compliance challenges.
Common Situations for Business Lawyer Assistance
During the initial stages, a startup may require business lawyers for dealing with the following entities:
- Legal settlements within the company – When there are two or more partners running a company, disagreements are bound to take place down the line. That is why it is best that you have a business lawyer to establish the rights and expectations of the partners beforehand.
- Public and third parties – When dealing with suppliers, employees, users, customers, and the general public, it is vital to make sure you know about legal risks associated with interacting with these entities.
- The government authorities – You certainly don’t want the government breathing down your neck for unintentionally violating any laws. The lawyer will make sure that you are doing business in a way that keeps you in the good books of the government authorities.
Other situations when startups require business lawyers include:
- For obtaining patents
- Raising capital
- Reviewing company policies
- Hiring employees
- Incorporation of a business
- Establishing and negotiating contracts with suppliers and customers
Whatever legal issues you want a business lawyer to handle for you, make sure that they are experienced and have a good rapport. For such a lawyer in Ohio, you should contact the Law Office of John C. Grundy at (330) 637-9030 or online to schedule a consultation and evaluate all your business options.