A majority of people have the dream to be their own boss, to pursue their passion, and fulfill their sense of purpose, which culminates in living a quality life. Startups are the percent that actualize such dreams by taking calculated risks and plunging into the business world despite the many challenges, both present and foreseen.
Startup companies typically have visions and goals, most importantly, to offer their services or goods to make the world a better place. In line with following their passion, small businesses require the services of an attorney to attain their goals. This is because all businesses are affected by legal factors that govern their operations.
In this article we’ll discuss the importance of a lawyer for small business needs.
Deciding On An Entity Type
Startups are spread across all industries, from agriculture to manufacturing to the service industry. These fields, while vastly different, have one thing in common – the need to organize into a specific entity under the laws of the state. Different companies within the various industries have distinct needs and priorities when deciding on an entity type. Hiring an attorney at the outset of starting a business can help owners identify and understandthe laws that affect each one of them. An attorney protects the interests of his clients by perusing through the fine print and ensuring that the startup companies understand the environmental, political, and economic factors that the business interacts with every day.
Understanding such factors ensures that the interests of the business are protected, thus, lifting the burden of uncertainty from the owner’s shoulders. Seeking legal advice can give startups a clear perception of what is involved in operating a specific business entity such as permits to be acquired, certificates to be issued, and the procedures to follow.
Understanding Company Agreements and Organizational Structure
Soliciting the services of a lawyer for small businesses helps entrepreneurs develop effective company agreements. An operating or company agreement sheds light on the structure and responsibilities of each individual in the company. The agreement clearly outlines the structure of the business indicating the duties and actions of the employees and the employer. It also determines the conditions and the operating environment of a company. Additionally, a lawyer for business startups can help protect against hostile takeovers or legal fines arising from doing certain activities outside of a company’s control. Therefore, companies can stay focused on their visions and goals without the fear of threats.
For a business to operate efficiently, there is a need to adhere to the set of rules that govern it. Essentially that is what business lawyers do; they help businesses do it right. Such rules are instituted to help organizations understand their responsibilities in regards to their employees, the law, and their environmental surrounding. Operating agreements also aid to communicate the vision of a company to the employees. Clearly communicated objectives enhance loyalty and compassion as every employee feels included and therefore applies their full potential.
Day to Day Operations
Business attorneys are an invaluable asset to businesses for day to day operations. If an attorney is only called when a business is in legal trouble the attorney will have to waste a lot of time and money getting caught up to speed on the issue rather than jumping right in to assist. By utilizing an attorney on day to day operations a business can prevent legal concerns before they become a problem and help a business owner avoid costly legal battles. There are various ways a business attorney can help with the day to day operations. For example, businesses need attorneys to help them draft and understand various contractual agreements. Contracts have the potential to make or break a business. The devil is always in the details. Attorneys have the skills and knowledge to advise a small business on different contracts to protect the organization’s interests both in the short and long term. Drafting legally binding and safe contracts is a perfect example of what business lawyers do. Business attorneys can also help business owners navigate the various laws relating to employment, benefits programs and collections to name a few.
Small businesses may not think of hiring an attorney, but in reality they often have a lot to gain from seeking help from a startup attorney. An attorney typically help achieve longevity for a business by protecting from both external and internal factors, and allows the business focus on its core responsibilities.