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.