Three Ways A Business Lawyer Can Help Your Business Succeed
Starting a business can be overwhelming, especially considering all the complexities surrounding taxes, intellectual property, partnership agreements, and more. At the start of a business, founding members often focus solely on bringing their product or service to market. While this approach is important, it is also wise to focus on long-term strategy and guard against adverse legal action or consequences. Here are three ways that hiring a business attorney in the early stages can help safeguard the future of your startup.
1. Establishment of the best legal entity
When establishing your corporation, an attorney will guide you through the various legal entity options, including incorporation. Incorporating your business separates your personal finances from your business and protects you from having to take personal responsibility for your business debts. An experienced business attorney will advise you on whether to establish yourself as a sole proprietorship, a limited liability corporation, or as a limited liability company. An attorney will help you choose the entity that is best for the long term so that you do not have to change it in the future and incur additional hassle and expense. Discussing your specific situation with a legal expert will allow you to assess your finances and future goals and help you make the right decision on how to join.
2. Protection of vital intellectual property
Putting safeguards in place to protect your intellectual property is imperative to the success of your business. Intellectual property is generally defined as unique items created by you that will provide a financial benefit. Intellectual property includes trademarks, copyrights, and patents on your original works, designs, and inventions. An attorney will help you establish proper intellectual property security so that you can avoid costly litigation in the future. For example, you can protect your logo or trademark by having your business attorney register them as trademarks with the U.S. Patent and Trademark Office. Also, if a competitor copies your logo or trademark, your legal counsel may send a letter. cease and desist and immediately stop any further damage to your trademark. Taking shortcuts on intellectual property at the beginning of your business and not getting adequate protection could cause irreparable damage to your brand in the future.
3. Review of complex legal documents
Starting a business generally involves dealing with a large amount of paperwork. Having an attorney work with you in the initial phase helps ensure that all documents, both created and received by you, are correct and ensures that all of your interests are covered. Typical documents that are covered in the initial phases are contracts, insurance policies, and partnership agreements. A partnership agreement can be particularly important if it addresses common issues among startup founders, such as division of responsibilities, division of shares, and profit sharing. Although there are many generic business contracts on the Internet, an advocate who focuses on your circumstances will ensure that the documents you use provide the unique protections necessary for your specific situation.
You may have started with an incredible idea and a great chance for success, but without the proper advice, your startup could be on a direct path to stress and burdensome expenses. Consulting with an experienced business attorney will help protect your business and avoid costly litigation in the future.
