10 Reasons Your Startup Needs a Business Lawyer

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Photo by Romain V on Unsplash

Typically, when people decide to start their business, they already have a good idea about running the business, how they are going to manage the operations, and some money to invest in the business. People tend to either start the business on their own or with a family member, whereas some people also choose to find the right partners or look for investors while they run business operations.

Starting a business can be very challenging and stressful. There is a lot that you need to take care of beyond perfecting your core business operations and running through different tasks. However, if you are lucky, you can hire experts for different tasks from the start. You might choose to outsource some of the tasks or hire contractors to manage a few of the tasks.

That said it’s extremely important to invest some money in hiring an overall business lawyer with diverse experience, who can ensure you are clear when it comes to needing a business corporation lawyer, tax evasion lawyer, federal criminal defence attorney, and several other roles. At times, some of the best federal criminal defence attorneys can also act as your business lawyer or represent your company initially until you build the need for a fully dedicated business lawyer.

Here are some reasons why you are going to need a good business lawyer for your startup who can wear multiple hats depending on what you and the business need and possibly act as your tax fraud lawyer, licensing and permits lawyer, and more.

Draft and manage contracts

When you are starting a new business or running a startup, you deal with many contracts for the company premises, offering services, hiring employees, and more. Besides, businesses also often involve agreements between investors, partners, employee, and suppliers To avoid going to court, it is important to sign a contract with each involved party that clearly state the terms of the contract. 

Handle registering, licensing, and permits

Your business operations and legal requirements vary with the nature of your business, operations, and more. For example, some companies are required to register themselves with the state to be able to run their operations, and some business entities need to get appropriate licenses or permits as required by the law for running their operations. Hence, depending on the nature of your industry, companies and even startups need a business lawyer or an expert like a tax evasion attorney based on your specific needs.

Guide with business formation

When you are buildup your business, you choose your business form, from a sole proprietorship, a partnership, an LLC or a corporation. This decision dictates your legal responsibilities, business operations, ownership of the business, and the capacity in which all involved parties will be responsible for potential liability. Some of these business forms have more legal formalities than others, and your business attorney guides you to successfully form the right business entity. For example, if you don’t

choose your business form correctly you might end up being personally responsible for any wrongdoings of your partners or employees. 

Establish multi-state business

The requirements and preconditions for forming and running a business in one particular state might not be acceptable in another state. When expanding your business operations to another state or relocating the business you need to make sure that you are in compliance with the laws and regulations of the state. If you are careful about the legal responsibilities and requirements, you might lose some of the protections and benefits that you might be getting in the original state where the business was formed. That’s another reason why it’s important to hire a business lawyer, federal criminal defense lawyer, or another professional with specific expertise to help you smoothly relocate or expand your operations.

Dealing with data privacy issues and website documents

The business environment has changed a lot over the past ten years, with websites and online shopping becoming a common business practice. That said, if your business model includes the use of a website, in any capacity, you will need to look into user agreements and data privacy. Your business lawyer can also help you with agreements for user code of conduct, disclaiming liability for the third-party website links, and disclaimer of warranties for the website. Your legal representative will also guide you with the online privacy policy that includes details on how the business will use, process, store, and share user and customer data based on your governing authority and state laws. 

Manage strict conformity

Your experience with establishing and running a business largely depends on your industry, location, and laws and regulations. Some companies are required by law to comply with strict laws and regulations by the state governing authority or otherwise they may lose the benefits and protection given by the state or they may even end up giving up on their business. Depending on the size of your company and the severity of legal requirements, you might need experts in international business law, tax fraud attorneys, and others for a smoother experience.

Protecting your business idea  

In this digital age, there often is an innovative idea at the core of most new startups and that’s why it is extremely important for these business entities to safeguard their unique ideas. In case, if your idea is patentable your IP lawyer can help you by filing the relevant patent. However, make sure you protect your idea as early as possible, as in some countries you lose patentability of an idea after some time of publicly disclosing it. If you are working in a highly competitive market, you want to file for a patent at the earliest and before your competitor beats you to it. With the help of your business attorney, you can also have your business advisors, employees, and business partners sign a confidential agreement to further safeguard the idea.

Filing tax return and tax consultation

When you are running your business, you have to be concerned about more than just filing your annual tax returns and paying the local and federal taxes. Different business forms come with their share of

different tax benefits and drawbacks. Your business attorney will guide you through the advantages and disadvantages particular to your business form and company and help you maximize the tax benefits you can take on.

Guide with raising capital

At different life stages, companies and startups need to raise capital, keep a close check and balance of their incomes and expenses, and make sure the entity behaves in a fiscally responsible manner following all laws by the governing authority. However, different business entities are required to have different regulations and procedures when they are raising capital and making monetary distributions. A business lawyer ensures compliance and all these business operations are running as stated by the law.

Business liability 

Different forms of business entities offer owners and investors different protections and risks. Businesses with personal liability are entities that put all your assets at risk along with the business. However, your business lawyer can help you avoid such situations and try to minimize your risk. For expertise to guide you regarding your personal liability and minimize the risk that your business may put you and your family in, your startup can benefit a business lawyer.