Small businesses everywhere all across the Hollywood stardom west coast to the corporate stratosphere of the east coast face one challenge: money, in that they don’t like to spend it needlessly. It makes sense given the fact that small businesses start up and rely totally on the revenue just to exist, but legal expenses? Why?
It seems like such an unnecessary cost, and just for consulting with a legal professional of some kind? It could be the difference between paying the electrical bill in the office or even the gas in the car just to get to HQ. It’s not like a small business operates as a mega-corporation, so every dollar counts.
However…. There are times when having that lawyer around is absolutely necessary, such as…
When You Need to Create Partnerships
Chances are you might not be going at this small business stuff all alone. In order to really grow and prosper, partnerships get built. However, They don’t just get built without some legal foundation.
This is where a skilled lawyer comes in. They’re the gatekeepers, the mediators, the custodians of good business relationships. Without that attorney looking over a specific agreement, you might have a partner or even yourself facing terms that might not be equitable; and because it’s legally binding, you’re stuck living it out in misery.
Ensure your agreement with partners sits in the hand of a good lawyer. That counsel can spot the loopholes, create solutions and get people to agree on something that works without problems.
Dealing With “Incorporations”
No matter how you look at it, working a “business” really isn’t an ‘extension of yourself’ as much as we’d like to think it is. Your business is not you. This is why when someone sues your business, they’re not suing you. That would be bad. The business is its own entity even though you created it, you run it and you earn from it.
Getting a lawyer to establish your business — whether it’s a “partnership,” LLC or S Corporation — is key.
Get the Right ‘Name’ For Your Business
You think you might have some fun with creating an actual ‘name’ for your business, and you might be right. However, it’s not all fun and games. This is where a good trademark and copyright attorney might come in handy, as you’ve got to watch out for infringement problems here.
Perhaps some other entrepreneurs out there have filed applications with the USPTO, protecting their right to use certain names. Do the research and consult with your attorney on what you could possibly name your company.
The Same Goes for Trademarking Terms
Perhaps you have certain rhetoric you like using. Perhaps it sets you apart from the competition. Definitely file with the trademark office, but this will take some more research. We’re not simply talking about a business ‘name’ now. These are general ‘terms’ you’d use for your business operations, sales and service.
Again, do the research. Consult with your attorney. File the right paperwork. Pay your fees. Then all you’ve got to do is wait for the government to make the decision. Or you can make it really easy on yourself and have your qualified business lawyer do it for you!
Are You Ready to Hire Some Employees?
You might get to that point if you’re getting to be so successful that you need help with someone shouldering some of the minor responsibilities of your own operations. It’s not, however, as simple as a meeting and handshake. There are legal regulations involved when hiring employees.
Talk to your lawyer about how you need something as simple as an ‘employee handbook.’ That’s actually mandated. If you don’t, you could potentially have a prospective employee complaining to the government about it. Of course, there are record keeping, employee classifications and taxes to worry about. Thankfully, that’s what you have a good attorney for.
How Important Is the IRS Classification?
Extremely important, actually. Since we touched on the tax issue just in the second-to-last sentence here, know that filing the right paperwork to the IRS quite possibly could be that much more crucial than if you were nothing more than a simple individual.
You’ll need an EIN (Employer Identification Number), among other things. Try to think about all the business litigation and tax regulations to focus on. That’s just another good reason why you should consult with a qualified business lawyer about what to do with your company.
Creating Your Own Contracts Can’t Be That Hard
Oh, but it is. It doesn’t matter whether you’re crafting a contract for your partner, your client, customer or even a third-party service provider, if there was ever anything harder than writing a college thesis paper, it’s drafting that very first contract.
You’ve got to touch every base without being long-winded. You’ve got to be clear and ironclad with the language. You’ve got to make it so anyone on the planet Earth can understand what you’re saying, and trust me: that’s hard to do, even as a genius writer.
Again, make sure you consult with your qualified business attorney about it. They know how contracts are written.
Sometimes You’ll Need the Right Licenses or Permits
You never know what you’ll need by law to sell what you plan to sell. Depending on the industry, there are literally loads of licenses and permits necessary to operate successfully and within legal parameters, and there’s no one better to tell you that than a lawyer.
Additionally, given how complex the government and laws can be, sometimes those specific licenses and permits are difficult to understand in layman’s terms. That’s, yet, another reason why you need counsel to walk through it all with you.
Let’s Say Someone Files a Lawsuit on You
Better yet, your company — because, like I said, your business is separate from you, or else you’d be in danger of losing the money in your own bank account, and maybe even your own house, all because, for instance, an employee screwed up on an order. It’s sad, really.
So make sure you have a lawyer on your side helping with that. Lawsuits are difficult to navigate. That’s what an attorney is for, going through the due process, diligence, forms and court appearances to ensure you’re receiving the correct procedure, fairness and best possible outcomes.
Maybe You’re Getting so Big That You’re a “Franchise”?
I honestly can’t say anything of how crucial it is to have a lawyer on staff if you ever get to this point. Think of your demographic expanding from your own neighborhood to quite possibly the entire United States.
That’s a wealth of potential lawsuits just in case something goes sour, potential workforce additions, partnerships and any additional expansions you might consider for your business. It’s a big deal. Make sure the big deal is handled by an attorney.
Above All Else, Though…. Don’t Spend a Lot of Money!
I do understand, though, that the legal industry can get costly. You can, however, do the research. Competition is out there, or else you wouldn’t have X amount of lawyers in one city operating within the same niche. Lawyers need to make money, too, and they can’t without obtaining the clients to do so. They will pitch their services to you, but seek the options.
UpCounsel has the resources. Research them and get in the know. There you will find the ultimate reason why an attorney is essential to your business.
About the Author: Matt Faustman is the CEO at UpCounsel. You can follow his business insights on Twitter at @upcounsel.
Cover photo credit: shawncalhoun
