No doubt, setting up a new business comes with trepidation, considering the hurdles involved. According to the U.S. Bureau of Labour Statistics (BLS), about 20% of businesses fail during their first two years, and 40% close down within the first five years of business. At the same time, 65% fail during their first ten years.
Probing questions linger about what exactly one should do to ensure the success of their startup business.
Amongst other things, you need a qualified business attorney to ensure your business will have a stable life cycle. In addition, having a business attorney walk with you makes the process smoother and more efficient and helps you avoid the dangerous pitfall that may cost your business.
Are you miserable and feel your business needs to be more productive? Then this article is for you, hydrate and continue scrolling down to understand why hiring a business attorney is ideal for your business.
Choosing a Suitable Business Structure
From the get-go, selecting the proper business structure is paramount; failure to which leads to legal hurdles. In addition, sole proprietorships and partnership structures have more liability exposure than LLCs.
Consider hiring a business attorney to assess your business idea, and they will help you understand tax obligations, team member contracts, setup costs, and the applicable business structure.
A business attorney will undoubtedly know the financial ropes involved in the business you intend to set up and knows how to navigate around them. In addition, an attorney will help you evaluate different ways to raise capital and steps to take to be fiscally stable.
Furthermore, the legal counselor will help set up your business, take advantage of tax breaks, and avoid unnecessary tax penalties.
Lawsuit and Liability Protections
Over 75 percent of startup businesses are a target for potential lawsuits. In addition, 36%-53% of small businesses are sued every year for up to $3.62 billion, reports the U.S. Chamber of Commerce Institute for Legal Reform.
A business attorney will help you reduce exposure to lawsuits such as employment lawsuits and product defects liabilities. Injuries to customers may arise due to product liability or personal injury claims. In addition, these claims may paralyze the entire business operations due to a strained business image and reputation. In such a scenario, a business attorney provides a way out by engaging and negotiating with the victims.
The business attorney will process the paperwork and help engage in meaningful communication between all parties with a grievance. Negotiation could lead to avoiding a lawsuit or ending one before it progresses to the courtroom.
Legal documents determine how effectively functions and rules are implemented. Omissions and errors may have turbulent effects.
Hence a business attorney comes in handy to draft and review the following legal documents.
- Team member contracts
- Supplier contracts
- Business incorporation forms
- State registration forms
All these documents are essential for the smooth running of the business, but if done without a business attorney, they might become a liability.
Business attorneys research and resolve legal disputes through the application of relevant laws, development of arguments, evidence collection, and acting as business legal representation.
A new business should understand that conflicts and disputes are bound to arise when they become part of the supply chain. When they do, having a professional business attorney is the first relief. With professional help, you are guaranteed that any conflict you encounter with employees, clients, government, or suppliers, will be sorted out.
Legal Disputes About a New Business
Disputes in association with the sale and acquisition of business inventory could be:
- Conflicts arising from Intellectual property (copyrights, trademarks, and patents)
- Incidences of inappropriate use of guarded data that lead to security breaches, such as sharing confidential information and bad data governance
Setting up a business without a professional business attorney is like throwing your business to the dogs due to the risk of exposure. Get an experienced business attorney to walk you through setting up a new business. Find out more at this website.