If you are planning to start a business, it is highly likely that you are looking for every way to reduce your capital expenditure. While some of these expenses can wait, there are two aspects that you can’t ignore; legal and accounts. According to a Bloomberg Study, 8 out of 10 new businesses fail and in most cases, this is because entrepreneurs ignore accounting and the legalities of doing business. Another review published in the New York Times shows that most entrepreneurs don’t know anything about the markets.
While the role of an accountant is obvious, there is always confusion on how a business attorney will help your enterprise. In fact, lack of knowledge on an attorney’s invaluable role and the costs involved forces entrepreneurs to ignore their legal input. Whether you are starting your business or it is already operational, it is imperative to understand how a legal expert is crucial for success.
Here are some of the ways your business lawyer will help your company:
- Business Setup
When starting your business, there are so many legal requirements to ensure you are compliant. From basic zoning requirements to registration, your attorney comes in handy. These experts are well aware of the different types of business models in law including Limited Liability Partnership (LLP), Limited Liability Company (LLC), partnerships and corporations. A qualified attorney gives you counsel on the right entity for your business model. This choice will greatly determine the taxes, exposure to liabilities, incentives among other legal aspects.
- Taxes and Licenses
This is the most convoluted aspect of starting a business. At the Erik Johnson Law firm, you will get vital assistance in registration for federal and local taxes. Many small business owners are caught off-guard by the authorities for failure to register or file taxes in time. This can lead to hefty fines or jail time.
- Drafting and Reviewing Contracts
The type of contacts you sign will determine your ROI. Your attorney is well versed in business negotiations and transactions. They also know your rights in any dispute but more importantly, they bring some objectivity to any negotiations. These experts ensure you only get into contracts that are viable and which guarantee the best returns on investment. They have the expertise to draft agreements that both parties are comfortable with.
- Employee Agreements
This is the most common cause of disputes in new businesses and it can lead to protracted legal battles. To avoid living in fear over what your employees will do, get a lawyer to help draft clear agreements. This saves you a lot of legal costs in future. More importantly, it creates a harmonious work environment where all parties trust each other.
- Intellectual Property
If you are in the creativity industry including media, IT among others, you need a lawyer to assist with property and trademark registration. Copyright protection is very important in the contemporary globalized economy.
Your business lawyer comes in handy during emergencies, real estate purchase and leasing, dissolving a partnership and generally warding off legal battles. Investing in a business lawyer is worth every dime; if you find yourself in court and you don’t have an attorney on your side, get ready to get burnt.