Every startup business owners need to hire a corporate lawyer. Several top business moguls of different ages have proven that big statement beyond every reasonable doubt.
Honestly, it can be challenging for your just-starting business to survive the heat of competition or rise to become one of the most respected brands in the world without having built a solid foundation on which you can make future ideas.
Meanwhile, the size of your business doesn’t matter when it comes to the question of hiring corporate lawyers. Except you are not planning for any future increase or expansion. Once you conceive the idea, the next best thing is to involve a legal practitioner that knows the business to the fullest. They will work with you to set up a formidable standard to save you from spending unnecessary expenses.
As a myth, business owners believe corporate lawyers only handle lawsuits. However, that is far from the truth. Of course, they will help you cover court cases to the brim. But they have much more to offer. Corporate lawyers will help establish, empower and protect you and your company in several ways. Though the list is endless, we are glad to expose you to the best eight reasons you must not start your business without involving a corporate lawyer. Learn more skills to stand out as a successful commercial lawyer.
8 Reasons to Hire Corporate Lawyers for a Startup Business
1. Help you to create a solid foundation
If you weren’t to succeed, you must think of your startup business like a newborn baby who needs to be adequately nursed and well-nourished at the infanthood stage to avoid untimely death. Your business needs all the reinforcement at the formation stage to have a strong skeleton on which the body will hang for a long time. Click here to hire a lawyer to obtain legal advice.
A corporate lawyer will help set up your new business at the beginning stages in several aspects. They include:
- Business formation: Your corporate lawyer will advise you to consider a partnership, a corporation or a limited liability company. Each option above has unique operation/tax requirements and liability. At this juncture, your corporate lawyer will help you choose the most suitable business structure that suits your business goals and objectives. You will also need the professional counsel of your corporate lawyer to decide on any transition that may happen in the future.
- Shareholder and operating agreements: Your corporate lawyer will help you define the terms for splitting company shares, determine how to manage the claims of a deceased partner, and set up action plans for unforeseen events. In a nutshell, your corporate lawyer will help you set up an operating agreement that will protect your company in any situation.
2. Help you create balanced legal contracts
You need well-written legal contacts to build hassle-free relationships with your suppliers, client and employees. An experienced corporate lawyer will help you draft and revise every contract to make sure it aligns with your business vision and bring huge profits. He will also help you scrutinize the agreement to check for loopholes and any clauses at your business’s disadvantage.
Some of the examples of contracts your corporate lawyer will handle include the following:
- Client contracts
- Employee contracts
- Nondisclosure contracts
3. Assist you with Mergers and Acquisitions Transactions
Even as you are just starting, you need to find a way to handle Mergers and Acquisitions transactions. Interestingly, M&A transactions come with complex processes which may also result in lasting consequences if not handled properly. Hence, you need to hire a competent corporate lawyer to guide you through every M&A transaction.
4. Prevent you from future employee issues
As your new business grows, you will need to hire more employees to increase the labour force and improve efficiency. When that happens, you may face some critical issues, as some employees may give you unnecessary headaches.
When working with a competent corporate lawyer, he would help you take all the necessary notes and set up an employment agreement that will prevent future problems, which may include:
- Creating a non-compete agreement
- Rearranging and determining the roles and responsibilities of every employee
- Designating your employees as independent contractors or staff according to their roles and the legal implications involved
- Classifying employees as exempt or on-exempt depending on the parameters set by the Fair Labour Standards Act
- Crafting appropriate training resources for employees to understand company policies aligned with local, state and federal laws
5. Protect your intellectual assets
A corporate lawyer will work in your interest to ensure your intellectual properties are safe. Your intellectual property may include your business name, brand, logo, trademarks, and some secret business-related information. Some of the ways to protect your intellectual property include:
- Preventing your competitors and other individuals from reproducing or stealing your business ideas
- Handling patent applications
- Educating your employees on the approved use of the intellectual property and its violations
- Taking on-time legal actions against every competition brand that attempts to violate your business intellectuals’ property rights
6. Keep you away from court
Some of the many formerly known top brands are nowhere to be found today because of business lawsuits. Indeed, lawsuits can cost your organization massive amounts of money and even mar your business image. That’s why you need to hire a competent corporate lawyer to protect your business from any event that can put you at risk of lawsuits.
Corporate lawyers know everything to do to keep your business from litigation. Here are some steps your legal practitioner would take to secure your business.
- Corporate lawyers will counsel you on how to protect the digital privacy of your business to avoid confidentiality breaches
- They will ensure your business complies with state and federal workplace discrimination laws
- They will ensure your business legally complies with all HR (Human Resources) matters. They will also guide you on the proper process to hire and terminate employment, including payment.
- Drafting and reviewing contracts that favour your business goals and objectives
Corporate lawyers will help you build a strong foundation and prepare a fertile ground on which every little effort you sow comes out in multiple folds. They will also ensure your business fulfils every obligation of the law and represent you in court. In a nutshell, you need corporate lawyers to build a lasting business that consistently brings you profits in the long term.
Knowledgeable business owners always come out clear when choosing the right commercial lawyer to handle their business. Most of them can only settle for a competent commercial lawyer with vast experience in legal proceedings who understands how to turn the hands of the law in their favour. And that is not negotiable.
No business owner likes to waste money on a commercial lawyer that can’t perform at the top level when it’s time to work in the client’s interest. Thus, to be among the most sought-after business lawyers in your region and beyond, you must have some virtues that others can hardly exhibit.
Meanwhile, being a respectable commercial lawyer is not only about accumulating multiple academic records and certifications. It is much of unequalled expertise and understanding of the ins and outs of the practice.
From experience and reviews, most business owners want a commercial lawyer that knows more than protecting a business from lawsuits. Instead, they prefer a seasoned legal practitioner who doubles as a business expert and can provide professional support to the company from scratch and stay to function as the face of the corporation. Checkout http://olsenelderlaw.com/how-commercial-lawyers-can-protect-your-business-with-non-compete-agreements/ to get how commercial lawyers can protect your business with non-compete agreements.
If you have been reading with attention, you will discover that business owners choose their potential commercial lawyers based on certain standout qualities. If you want to belong to the class of the kingpins, you also need to showcase top-notch traits as proof. Here are the ten best essential attributes that can give you an edge over the competition pool.
Top 8 Qualities to Help You Become a Successful Commercial Lawyer
1. Vast knowledge of business law and ethics
Suppose you want to deliver to the utmost expectation of your client. In that case, you must understand the nitty-gritty of business law and ethics. That way, you will be able to make every necessary preparation, build an accurate and lasting business structure and create a working principle that will work to the advantage of the business across generations.
Indeed, it takes only an experienced commercial lawyer to pro-vision that will make up for future loopholes that can affect the business’s operations. Before you come out to claim a professional, you must have done several in-depth investigations about everything you ought to know about the practice. Learn more legal essentials for business.
And that’s where passion comes in. Every reputable commercial lawyer needs the drive to study and understand the essentials of commercial law. Then find out more about how to avoid potential problems or disputes between business partners.
2. Higher degrees in law
We have just discussed the importance of personal research. However, you must also have been taught the basics. Although, it is not compulsory that you study commercial law before you can be recognized as a competent commercial lawyer. Yet, a degree or higher diploma in law will be a great advantage. Click here for master law courses in Melbourne, Australia.
3. Great Intra and interpersonal skills
Most of the professionals in various fields of endeavour have the required knowledge and certifications to do exploits in the field. However, their unique interpersonal skills make the difference.
Suppose you want to stand out among your contemporaries. In that case, it is essential that you develop top-notch intrapersonal and interpersonal skills. If you don’t know, your job isn’t solely about handling business. You will have to work as a part of your client’s team. In that light, you need to possess some traits that will make a great team player. Some of the qualities you need in this regard are self-confidence. It is a trait that would convince your client of your capability even at the first meeting.
4. A variety of interests
Your interest in protecting businesses against the unnecessary lawsuit and potential future problems will reveal a high level of commitment and accountability. In addition, it’s a sign of excellence. However, all that is not enough to make you the best among the elites. The idea is to get you to stand out, so you need to be interested in various aspects of legal business practices. More so, you may need to look to develop an interest in other activities outside the law industry.
Clients will respect you for your initiative. That’s not an exaggeration. The fact is, most business owners only have an idea of what they want to do. They don’t know what it takes or how to establish a strong and functional structure to help them achieve their long-term business goals and objectives.
Business owners always need a commercial lawyer with impressive initiative and responsibility. It is always good to know how to bring out the solution in every challenging situation and, most notably, how to prevent them from happening.
6. Business expertise
How can you survive as a commercial without full knowledge of the business? To help other companies grow, you must understand the business like the back of your hands. Developing a business mindset is essential for anyone who wants to thrive as a commercial lawyer, and that’s not negotiable.
One of the essential qualities most business owners look out for when choosing their preferred commercial lawyer is the mindset of profit. It takes enormous amounts of money to hire a commercial lawyer. So, the least you could do is build a structure that brings sustained profits.
7. Proper representation
A good commercial lawyer must be prepared to serve as the face of the company in a court of law whenever legal issues arise. More than that, you must be able to represent your client correctly in terms of making deals and negotiations that benefit the business. Most business owners prefer to hire a commercial lawyer who will work in their best interest in project management and negotiations.
8. Great attention to details
One of the significant responsibilities of commercial lawyers is to help their clients draft contracts and employee agreements. Meanwhile, those paperwork requires in-depth scrutiny, patience and understanding. Business owners are looking for a commercial lawyer who can read thoroughly to discover every hidden clause that may not favour the business. So, if you can pay attention to details, you have already won the heart of your clients.
Excellent language skills can be a unique opportunity to get more recognized than your contemporaries in the commercial law industry. Though it is not a primary quality, it will help you maintain long-term relationships with your clients and put you among the most sought-after commercial lawyers in your region and beyond.
Hiring competent employees to help achieve your business goals and objectives is always good. Loyal employees usually form a great team that understands the ins and outs of the business and even runs it perfectly without much direction from the management.
Of course, every business owner’s goal is to build a team of employees that can work like they own the business. However they also need commercial lawyers because there is another side to it. Your employee might not desire to stay with your company throughout their active years of service. They might choose their relationship with you for a few reasons like demand for higher wages, relocation and more.
When an employee who has known every secret about your business leaves, there’s a tendency that they would go ahead to establish a competing business. Worse, they may work for your competitor if the latter promises many benefits. And that is already bad news for your business. Visit https://www.ags.gov.au to get about skilled commercial lawyers.
From experience, every competing business aims to overshadow its competitors and dominate the market. Not only that, but they would also do everything they can to win over your clients, which may cause your profit margin to drop drastically. And that hurts.
But, the sweet side of the coin is that it is preventable. Yes. There is a way commercial lawyers can help protect your business with non-compete clauses and agreements. This legal document will prevent your employees from harming you, having amassed much knowledge of your business. Learn more about Australian government solicitor.
In recent times, commercial lawyers have been applying for non-compete agreements. As a result, courts are taking more time to scrutinize non-compete clauses and contracts to ensure no hidden threats. Suppose you want your employees or partners to sign a non-compete agreement. In that case, it is advisable that you hire a competent commercial lawyer to help you examine the language and rewrite it (if necessary) to enforce it more.
What Are Non-Compete Clauses And Agreements?
A non-compete clause is found in a contract or can be an entire non-compete agreement that prevents an individual or a corporation from engaging in business that can be competing with your company in specific locations for a stipulated period. The idea is to keep your employees away from your competitors, who can use them to gain more access to your clients and harm your business in the long run.
With a non-compete, commercial lawyers can help restrain your former employees or partners from using your trade secrets learned while working with you to establish a similar business in the future. When you finally get your employees to sign this legal document, you can relax and do your business with peace of mind. It will also make sure that your intellectual property is secured.
Note that it is the sole responsibility of your commercial lawyer to write a non-compete for your business. Depending on his expertise, the commercial lawyer will guide you on how to fulfil your end of the agreement.
What Are the General Provisions in a Typical Non-Compete Agreement?
It is essential that you have a complete understanding of non-compete content. Although, your commercial lawyer will read everything to you before inviting other partners to sign. Yet, it is better to know what the document contains to approach your commercial lawyer with prior knowledge.
For clarity, a typical non-compete contains the following:
- Effective period
A meaningful non-compete should clearly state the period the entire agreement will be enforceable. Before setting the effective date, your commercial lawyer would have taken time to discuss it with you to ensure you agree with it. The restriction period from working for a competitor or as a competitor must be reasonable. Your lawyer guides you according to your business cycle and industry.
- Reason for non-compete
Suppose you are going to permit your employee or partner to go into the same business as yours. In that case, you must provide tangible reasons for the court to agree to the prohibitions. The court demands that you give specific reasons that brought about the restrictions. If your reasons are not tenable in court, you may not have a non-compete agreement in the long run. That is one of the reasons you need a commercial lawyer to help you handle the process. It’s better to pay for the expertise and smile at the end of the day.
- Geographical Area
Come to think of it; it is not reasonable to restrict your former employee from setting up a business with the knowledge he has gained from you in a distant region. At best, you can only restrict the former staff from establishing a business in your dominant areas where you already have loyal clients. So, a non-compete can only be enforceable in a particular region. It could be a city, state, or even country. Note that the specific area you provide must market.
Of course, not all non-compete contains non-solicitation clauses. But, it is advisable to protect your employees or clients from being poached. You may discuss with your commercial lawyer whether the situation on the ground requires adding non-solicitation to your agreement. The professional will guide you appropriately in that regard.
The law doesn’t support that you restrict an individual from establishing a business in their preferred location without providing compensation. That would mean something else in the face of the law. So, when writing your non-compete clauses, ensure you are specific about what you want to offer the restricted individual for not competing with your business. You may provide secured employment benefits or do it in cash if it’s an employee. Whatever it may be, it must be specific. Your commercial lawyer will help you figure out how to offer compensation without harming your pocket.
There should be specific penalties if the other party breaches the non-compete agreement. Your commercial knows what to do in that aspect, so you only need to allow lawyers to put their experience on the line.
Non-compete clauses and agreements can protect your business from being imitated by preventing any individual from establishing a competing company or work takes your business secrets to work with your competitors. However, it cannot prohibit your competitor for an extended period. The legal document must protect your business and relieve the signee of any unnecessary burden. If you want a non-compete agreement, you need to hire an experienced commercial lawyer.