29 Jun Mind Your Business – By Hiring a Business Attorney
Hiring a business attorney will save you money, time, and help avoid risks that often become very complicated later on.
Now, 1 in every 5 people engage in a side business, freelance work, or work independently. As more people go into business for themselves, there is more exposure to legal risks.
Are you minding the details of your business and properly assessing the legal risks involved?
With freelance work on the rise, business is now handled so casually – with a lack of legal details and formal agreements. We live in a startup world with new technology, innovative service ideas, and unique products. Friends and relatives are recruited to join in. Hobbies turn into jackpots. Before you know it, the seemingly obvious partnership…well…is not a legal partnership.
- A small group of friends working on a new phone application in their spare time rarely stop to determine how equity will be shared. It’s just fun for now.
- You have a relative or two help out when you start a lawn care company or begin to flip houses, etc.
An entrepreneur can handle some legal documentation and issues that come along. However, there are very small details in every-day business activities that are more complex than you can ever imagine.
Most business owners and entrepreneurs place the hiring of a business attorney far down on the list of things to do. This is common due to the perception of the services that attorneys provide for businesses. Most people think an attorney is needed AFTER a relevant event happens. The problem with this thought pattern is: It can be too late. In many case, the resulting losses can be great.
Any agreement regarding operations, clients, products, partnerships, and even collaborations – calls for review by an attorney.
Most contract matters are more complicated than people realize – until it is too late to do anything about it.
Startups face the biggest risks. Every new venture has a set of risks to consider. In most cases, experiences lead to changes and updates to agreements – to better fit the organization as it grows and/or make operational changes. Attorneys can objectively help assess the long term needs and risks before issues arise.
Even choosing the right business structure can be very tricky in particular industries. Planning the right business formation should include considerations for tax structures, operational requirements, liability, and so many other factors.
What happens to the business if the owner(s) pass away? Are the dissolution plans outlined in your bylaws? Your will?
Whether a new product, service, or new venture is involved – an attorney should be hired during the planning phase. NOT the reactive phase.
Call us today to discuss your business goals and needs.