Starting a business is hard work. There are so many things to think about – from creating a product or service that people want to building a website, marketing your business, dealing with finances, and administration.
It’s no wonder so many people give up before they even get started. According to research, only about 50% of businesses make it to their fifth year. One thing that can make the process of starting a business much easier is hiring a business attorney. This is where a business attorney comes in.
A business attorney can help you with everything from incorporating your business to drafting contracts and agreements. Here are the top reasons why you should hire a business attorney for your startup business.
1. Help You Make Informed Decisions During the Idea Stage
Before you even start thinking about incorporating your business, you need to have a great idea.
Not just any idea — but an idea that has the potential to be successful. There are a lot of factors that go into whether or not an idea is going to be successful, and it can be difficult to know where to even start.
This is where hiring a business attorney comes in. They can help you by evaluating your idea and giving you honest feedback about its chances of success. They can also help connect you with resources that can help you get your business off the ground.
All of this is incredibly important, and it’s something that you should not take on by yourself. A business formation attorney will make sure that you’re making informed decisions from the very beginning, putting you in a much better position to succeed.
2. Help You Understand Startup Requirements and Protocols
There are a lot of requirements and protocols that you need to be aware of when starting a business. Incorporating your business, drafting contracts, and understanding the law can be incredibly confusing. If you don’t follow the proper procedures, you could end up in hot water – or worse, out of business.
A business attorney will ensure that you’re following all requirements and protocols. They’ll help you incorporate your business, draft contracts, and understand the law. This way, you can avoid any legal problems down the road.
Furthermore, a business attorney can help you navigate the often-complex world of business regulations. They’ll make sure you comply with all of the relevant laws and regulations, saving you a lot of time and headache.
In short, a business attorney will help you avoid any legal issues that could potentially sink your startup.
3. Help You Choose the Right Legal Structure for Your Business
One of the most important decisions you’ll make when starting a business is choosing the right legal structure. This decision will have long-term implications for your business, so it’s not one that you should take lightly.
A business attorney can help you understand the pros and cons of each type of legal structure and help you choose the one that’s right for your business.
There are a few different types of legal structures to choose from, including sole proprietorships, partnerships, limited liability companies (LLCs), and corporations. Each has its own advantages and disadvantages, so it’s important to choose the one that’s right for your business.
Sole proprietorships are the simplest and most common type of business structure. This type of business is owned and operated by one person, and there is no distinction between the owner and the business.
These are relatively easy to set up and operate, and they offer a number of tax advantages. However, sole proprietorships also have a few disadvantages. For example, the owner is personally liable for all debts and obligations of the business.
Partnerships are similar to sole proprietorships in that they are owned and operated by two or more people. There are two types of partnerships: general partnerships and limited partnerships.
General partnerships are relatively easy to set up, but they offer few legal protections for the partners. Limited partnerships are more complex and offer greater legal protection for the partners, but they can be more expensive to set up.
Limited Liability Companies
Limited liability companies (LLCs) are a type of business structure that offers limited liability for the owners. LLCs are relatively easy to set up and offer a number of tax advantages.
However, LLCs also have a few disadvantages. For example, the owners may be required to pay self-employment taxes.
Corporations are a type of business structure that offers limited liability for the shareholders. Corporations are more complex and expensive to set up than other types of business structures.
Still, they offer a number of advantages, such as the ability to raise capital through the sale of stock.
Choosing the right legal structure for your business is a critical decision that will have long-term implications. This is the one aspect of your startup journey that needs business legal help from professional counsel.
4. Help You With Tax Law Matters
There are a number of tax laws that apply to businesses, and it’s important to make sure that you’re in compliance with all applicable laws. For example, if you’re selling products or services, you’ll need to collect and remit sales tax.
If you’re hiring employees, you’ll need to withhold federal, state, and local taxes from their paychecks. You’ll also need to pay unemployment taxes. In addition, you’ll need to file annual tax returns.
Business attorneys have extensive knowledge about tax law and can help you understand the rules and regulations that apply to your startup. They’ll help you prepare your taxes on time every year, file any necessary forms or reports, and deal with any audits or other legal matters related to taxes.
As your company grows, it’s important to have an attorney who understands tax law so that you can stay compliant. It will also help you protect yourself from potential penalties or fines by ensuring that you’re following the rules set by the IRS.
5. Help You With Intellectual Property Law
If you have a startup, chances are you have some form of intellectual property, such as a patent, trademark, or copyright.
It’s important to make sure that your intellectual property is properly protected. Business attorneys can help you navigate the process and make sure that you’re taking all of the necessary steps to protect your startup.
There are several different types of intellectual property, and each type has its own set of rules and regulations. For example, patents protect inventions, while trademarks protect brand names and logos. Copyrights protect creative works, such as books, movies, and music.
If you have intellectual property, it’s important to make sure that you’re following all of the rules and regulations that are applicable. A business attorney can help you do this and ensure that your startup is fully protected.
6. They’ll Help With Contract Law
If you have a startup, chances are you’ll need to enter into contracts with other businesses or individuals. For example, if you’re selling products or services, you’ll need to have contracts in place with your customers.
If you’re hiring employees, you’ll need to have employment contracts in place. In addition, if you’re leasing office space or equipment, you’ll need to have leases in place.
Business contracts are important because they help to define the rights and responsibilities of all parties involved in a transaction. They also help to minimize disputes and ensure that all parties abide by the agreed-upon terms.
Business attorneys specialize in contract law and can help you draft legally binding contracts that protect your startup and its interests. They’ll review existing contracts, negotiate new contracts, and provide guidance on any legal issues related to contracts.
7. Help You With Asset Protection
One of the main reasons why startups fail is because they are unable to pay their debts. This could be due to a number of reasons, such as not having enough revenue or taking on too much debt.
Asset protection planning is important for small businesses in order to protect their assets from creditors. There are several ways to do this, such as setting up a trust or limited liability company.
Another way to protect your assets is through bankruptcy. This is a legal process where you can discharge your debts and protect your assets.
If you are having trouble paying your debts, then you should speak to an asset protection attorney. They can help you create a plan to protect your assets and help you get out of debt.
Asset protection is an important part of small business planning. By taking steps to protect your assets, you can ensure that your business will be able to stay afloat even if you run into financial trouble.
Why You Need a Business Attorney for Your Business Legal Issues
If you’re thinking about starting a business, it’s important to make sure that you have a good business attorney on your side. Business attorneys can help you with a wide range of legal issues, such as tax law, debt management, intellectual property law, contract law, and business litigation.
A good business attorney will help you navigate the legal landscape and make sure that you’re taking all of the necessary steps to protect your interests. If you’re looking for business legal advice, be sure to check out the Law Offices of Smith Barid.
Contact us today to schedule a consultation. We look forward to helping you grow your business!