While starting a new business can be an exciting journey filled with much potential and promise, it’s also a path that’s guaranteed to have its own unique challenges, such as navigating certain stringent legal requirements that can slow down starting your venture.
Even for the most seasoned entrepreneur, ensuring that your business is legally sound and compliant can be frustrating and extremely time-consuming without the right assistance. Fortunately, with the aid of experienced business lawyers, any new or seasoned business owner can easily navigate their way through the legal labyrinth, ensuring compliance at every stage of the business. This article will detail some of the ways a business lawyer can help you when starting a business and when you should consider hiring one.
Understanding the Role of Business Lawyers
Business lawyers have expertise handling all aspects relating to the inception and operation of a company. They can help with contract law, corporate law, intellectual property rights, licensing issues and more. These professionals work in close collaboration with new businesses to ensure compliance with all relevant local and state regulations, all while safeguarding the best interests of the business owner and keeping them in the loop.
Assisting with Proper Entity Formation
One of the critical steps when setting up your business involves selecting the appropriate entity type, be it a sole proprietorship, partnership or corporation. Your choice of entity type will have significant implications on tax liability and asset protection as well as activities you can and cannot do in your business, which could inevitably affect profitability. A competent business lawyer will be able to guide you through this selection process, ensuring you set up the right entity type for your specific scenario.
Drafting Contracts & Agreements
For any commercial enterprise to operate successfully, there must be clear-cut contracts in place. Poorly drafted contracts can lead to disputes and discrepancies as the business progresses, costing time and money. Business lawyers are adept at drafting legally binding contracts that protect client interests whilst significantly minimising risk exposure over the long term, giving the business owner or entrepreneur peace of mind knowing that their business and assets will be protected as their business grows.
Navigating Regulatory Compliance Issues
Every industry comes with its own unique set of laws governing operations, from health safety standards in food processing plants to privacy laws affecting eCommerce platforms. These examples form just the tip of the regulatory compliance iceberg many companies face.
When it comes to compliance, ignorance is not bliss, as non-adherence to regulatory and compliance laws will expose a business to hefty fines or even immediate closure by governing bodies, leading to potentially catastrophic financial losses. A proficient business lawyer will help you steer clear of any hidden compliance pitfalls, maintaining unimpeded operational flow of your business.
Handling Intellectual Property Protection
Intellectual property is a cornerstone that successful businesses are becoming more diligent about. With the advent of generative AI tools as well as the evolution of branding in digital marketing, businesses are creating more logos, patents and copyrights than ever before.
However, when these assets aren’t properly secured and protected, businesses can suffer loss of revenue as well as reputation damage due to competitors entering the space and either copying or blatantly using another company’s IP to promote their competing business. Enlisting the services of experienced business lawyers will ensure that you’re protected against infringements from competitors.
Preventing Potential Lawsuits
A skilled business lawyer can help prevent many lawsuits from occurring. By advising on matters such as employment practices, regulatory compliance and contract drafting, they can help you avoid legal pitfalls that could lead to costly and unnecessary litigation.
Assisting with Licences & Permits
Depending on the nature of your business, you may need specific licences and permits to operate legally. A business lawyer can help you understand what licences and permits you need, assist with the application process and ensure that you maintain compliance with these requirements.
