Some people are willing to turn their passions into careers. Others are tired of working under tight deadlines. A few are driven by the desire of being their own boss. Starting your own small business can solve many of these problems. Starting a small business is exciting and challenging at the same time. It is a life-changing decision that requires vigorous efforts, hard work, detailed planning and ability to face challenges. The statistics show that over 20% of small businesses fail in their first year. Obviously, there are a number of failure-causing reasons, such as poor management, cash flow, marketing mistakes, etc. In this regard, underestimating the need of legal help in starting a small business can have fatal consequences. Many small business owners put off hiring a business lawyer until it is too late. Yet, this is a matter when an ounce of prevention is worth a pound of the cure. Here are 3 most common situations when you will certainly need a business lawyer for your small business:
Choosing Your Business Structure, Business Lawyer
Determining the structure of the small business is one of the key decisions a business owner has to make. The choice of the structure depends on many factors, such as the type of the business, the vision of further grow and some others. Consequently, the business owner is to select between a sole proprietorship, partnership, LLC, corporations, and nonprofit. Note that your choice will affect your further exposure to personal liabilities, tax obligations, setup fees, and other ongoing expenses. That is why it will wise to discuss your proposed small business structure with a business lawyer before opting out for one of the above-mentioned options. The experienced business law attorneys at the Margarian Law firm can provide you with proper guidance to make the best choice according to your business type.
Dealing with Employee Issues
It is believed that professional and skillful employees are the cornerstone of any business. A clearly set employment contract can prevent a lot of misunderstandings between the employees and the business owner. The employment contracts are legal documents defining the terms and conditions of employment. Thus, drafting an employment contract requires deep legal knowledge.
Hiring a business lawyer when dealing with employment contracts is essential for further effective employee-employer relationships. A skilled business lawyer will best advise you on settling many employee-related issues according to the law requirements, thus retaining you from the risk of getting sued.
Drafting or Negotiating a Contract
Starting a business with a partner? A written partnership contract will specify each partner’s role in the day-to-day operations of the company. To avoid putting your small business into danger you will certainly need an accurate legal guidance when drafting a partnership contract. A professional business lawyer will root out the potential controversial points of the contract and negotiate with the other party to ensure your rights preserved as a part of the contract. In addition, if you already signed a partnership contract and the other party breached it, an experienced business lawyer will help you to recover your rights and get damage award if needed.
Another type of contract that needs to be considered is Confidentiality and Invention Assignment contract. This contract is signed between an employee and employer to make sure the employee keeps confidential the proprietary information of the company. Drafting a Confidentiality contract is a complicated legal process. So, do not hesitate to apply a business lawyer for help when you are facing the important decision of drafting/signing a Confidentiality contract.
The experienced and knowledgeable business lawyers at the Margarian Law firm are equipped with deep business law knowledge and are willing to protect you from legal implications. They are ready to help your small business run smoothly and flourish without having any legal concern.