Getting a small business up and running is a huge achievement, but it is not uncommon for the profit margin to be thin in the beginning. Cash flow concerns are one of the reasons many small business owners choose not to consult an attorney who specializes in business law, but this can be a big mistake. The fees a lawyer charges can be high, but in the long run, the advice from a reputable attorney can save your company a lot of money and prevent future legal problems. If you're starting a small business there are many reasons to contact a business attorney, such as:
Assistance in Structuring Your Business
When you start a small business, there are many ways that you can structure it. You can choose to be an LLC, sole proprietorship, corporation, partnership or non-profit. But if you're a first time business owner it can be daunting to figure out which type of business structure will work best for your situation and offer favorable tax terms. A business attorney will be able to look over your business plan, financial information, and listen to your vision for the business in order to assist you in structuring your business properly.
Understanding Employee Issues
Hiring and firing of employees can leave your business in a precarious situation if you are not doing everything according to employment laws. Having a trusted business lawyer to turn to can help ensure that you don't illegally fire someone and leave your company open for an expensive lawsuit or make mistakes in your hiring process that can lead to trouble. If you choose to work with independent contractors who are not employees of your company, a lawyer can draw up a contract that protects the interests of both parties.
Dealing with Leases
Most small businesses require office, retail, or warehouse space, and it is typically more cost effective to lease space instead of purchasing expensive commercial real estate. But getting into a bad lease with unfavorable terms can result in your small business losing money. Before signing any long term lease for your small business, it is in your best interest to have your attorney read it over line by line.
This will help ensure there are no clauses that allow the landlord to increase the rent beyond a reasonable rate each year, or charge you excessive deposits or fees. Your lawyer will protect your company's best interest so you don't have to worry about anything during the term of the lease.
Contact firms like Caldwell Kennedy & Porter for more information.
My husband has worked in the construction industry for nearly twenty years. Three years ago, he decided to open his own business performing renovation work. Having so much experience helped him land clients and showed him that he has to protect himself from the clients that aren't so easy to please. We started working with an attorney in the beginning to have all of the contracts drawn up and have called when things go badly with clients. This blog will show you what you need to do to protect yourself from legal liabilities when you work as a contractor in today's world.