The world often tends to glamorize corporate jobs. However, the real fun lies in starting something from scratch. Think about it. Every flourishing conglomerate of today started off as a mere idea by a group of individuals.
The Hill reports that currently, there are approximately 582 million entrepreneurs in the world. And this includes some big names as well. For starters, as per Wealth-X, 62 percent of US billionaires are self-made.
Those of you who decide to launch your own startup will realize that various legal matters come into effect when you start a business. And unless you have expertise in law, you will surely feel like a fish out of water.
Hence, it is advised that you seek a business lawyer’s help when you start your business. Here is why.
1. Drafting contracts
There is no such thing as a one-man show. Even if you begin your journey alone, you will soon require the help of other resources. This will include both employees and vendors. And this is when you will need to draft contracts.
This is not just any piece of content! Instead, there are various facets of contract development. A contract is a guide of what an employee or vendor is legally bound to do for you and the terms and conditions you must follow.
You must also keep in mind certain laws. Additionally, you must ensure that there aren’t any loopholes that can end up creating problems. It is hard for anyone except a business attorney to ensure that all parties’ rights are protected.
At the same time, before signing contracts presented by others, a lawyer can best advise you whether the document is safe for you to sign or if it has any loopholes that require amendment and negotiation.
2. Understanding taxes
You might wonder, “But wait! My accountant will be filing my business taxes, right?” Yes, you are on the right track.
But before an accountant can begin smoothly filing your business tax returns, a tax attorney can guide you about how to register your firm for state and federal tax identification numbers. They will help you in understanding what effect different business transactions have on your taxes.
While you are at it, make sure to get a local lawyer to look after your taxes. This is because state laws differ all across the US. Let’s say your business is set up in Plano. Here, the laws of Texas will be applicable to you. And a quality business tax attorney Plano offers will be an ideal choice.
3. Lawsuit prevention
You will be surprised by the sheer number of lawsuits that small businesses worldwide have to deal with! As per Forbes, 36-53 percent of small businesses are involved in at least one lawsuit. Not to mention that a whopping 90 percent of all businesses are engaged in legal battles at any given time.
This is an alarming statistic. Especially for an entrepreneur without enough cash flows to deal with expensive litigations! By hiring a lawyer, a company can effectively reduce their exposure to lawsuits. A lawyer will help you in mitigating scenarios that might lead to legal battles.
4. Reviewing Leases
Regardless of the size of your business, you will need space to work. Real estate, whether you are flat out buying a space or leasing it, is a very tricky industry.
It doesn’t matter how great of a relationship you have with your seller. You can never be sure if the deal they offer is in our best interest. Also, leasing agreements and contracts tend to be a tad too technical to be understood by laymen.
A business lawyer reviews all agreement with sellers, run background checks to ensure their legitimacy, and break down the terms so that you can easily understand it.
5. Protecting your intellectual property
Every year, thousands of patents are granted. In 2018 alone, approximately 285,000 applications were filed in the US. Sooner or later, you will need to patent your business to ensure your idea and intellectual property is protected.
Here, you will need the help of an intellectual property specialist. Since business lawyers are an important part of the legal network, they will be able to connect you with the right specialists. Therefore, apart from their expertise, such attorneys come in handy for networking as well.
6. Spread the positive word of mouth
With a limited budget, it is hard for entrepreneurs to market their business. And without people knowing about your service, there is a slim chance that they will come knocking on your doors.
This is where your relationships with other parties come in handy. For starters, an established business lawyer with a plethora of clients, as well as a strong network, can act as your unofficial spokesperson. They can tell people about your business and help boost your word of mouth.
Why would their word matter? Well, established and esteemed individuals have credibility. People are more likely to listen to them and give your relatively new service a try if they vouch for you.
7. Help you in following the law
Ignorance can be deadly in the corporate world. No court in the world will give you a pass because you simply didn’t know about the law!
As an organization, everyone expects you to follow the law. And to do so, you must know it. Considering how technical and extensive laws are, the chances are you will feel lost if you try to read up on it on your own.
Here, a business attorney can help make sure that your company complies with all laws and rules without understanding legal terms present in the laws. This will further help you in avoiding litigations.
When starting out, hiring a resource that doesn’t directly affect your day-to-day operations can seem like a waste of money. But, for a company to thrive, there are various seemingly invisible obstacles that an entrepreneur must overcome. And a business attorney helps in navigating through these challenges.
Hire one. Then, you are free to focus on what really matters – your idea!