Reasons to Hire a Business Attorney When Starting Your Company
Starting your own business can be exciting. Not only do you make money doing what you love, but you also enjoy the flexibility and independence that comes with being your own boss. However, there’s a lot involved in starting and operating a business successfully. From choosing a business structure and complying with employment laws to protecting your intellectual property and establishing trust with investors, you will likely face many challenges when starting a business.
In fact, recent data from the Bureau of Labor Statistics show that about 20% of startups fail during the first year, and approximately 50% of those that run past the first year don’t reach the fifth year. Most of these startups fail due to the numerous challenges they face in the market.
It’s important to partner with a reputable and trusted business law firm like Cohen Schneider Law P.C. to help deal with the challenging aspects of starting a business and protect you from potential liabilities. If you’re looking to start your own company, here are a few reasons you may need to hire a business attorney from the start:
1. Forming A New Business
One of the most challenging parts of starting your business is choosing the ideal business structure. Many factors influence your business structure, including record keeping, liability, and taxation. Choosing the wrong business entity when forming your business can result in unnecessary legal issues, limited growth, additional taxes, and financial liabilities.
For instance, choosing a sole proprietorship when you were supposed to form an LLC company can expose you to numerous liabilities. However, a business attorney can help you understand the various liabilities of each business structure, helping you make an informed decision and ensure you form the right structure for your business.
2. Prevent Lawsuit
Disputes and lawsuits are more likely to happen when starting a business. These disputes and lawsuits can be from discrimination accusations, workplace injury, insurance issues, employment disputes, and partnership disputes. Not only can legal issues take a toll on your mental health, but they can also have a massive impact on the growth and success of your startup.
However, hiring a business lawyer during the initial stages of your business can help you build a solid legal foundation for your business to reduce the likelihood of legal issues. They help resolve disputes that may arise out of court, saving you time and money. If you’re involved in a lawsuit, your attorney also represents you in court and protects your business.
3. Protect your Intellectual Property
Apart from helping you choose the correct business entity, working with a business attorney when launching a business is crucial since they help protect your company’s intellectual property. This helps protect your company’s most valuable assets and safeguard your brand’s identity to help you stand out in today’s competitive market. This can include your inventions, designs, original work, and logos. Your lawyer helps you file your copyright, trademark, or patent registrations for your intellectual property. They also ensure your business doesn’t violate other companies’ intellectual property.
Every business, whether new or established, requires the services of a business lawyer to safeguard its legal rights and overcome obstacles that could hinder growth. An experienced business attorney can help you draft all the necessary legal documents when starting your business, reduce the likelihood of lawsuits, and deal with any legal issues that may arise when running your business.