When starting a new business, there are many legal requirements and forms to be completed. Depending on your business and industry, these tasks can vary from relatively simple to highly complicated.
However, even if you consider yourself legal adept, most new business owners will benefit from legal support to free-up time and stress and allow them to focus on their business goals. In fact, delegating to experts is one of the top traits for successful business owners.
Our Florida business formation lawyers regularly help entrepreneurs and list these reasons as benefits of using a lawyer to start a new business:
When You Need a Lawyer to Start a Business
Choosing a Business Structure
Deciding upon the right corporate structure for your new business is far from easy. This structure will determine how your company handles taxes, business liabilities and the existence of partners or shareholders. You must select not only the correct corporate entity but also the optimal one.
A business formation lawyer can sit down with you, listen to your goals, fears and industry and decide upon the optimal business structure.
For example, if you have a business partner, then your attorney will help decide between a limited partnership, corporation or limited liability company. On paper, they could all work. But it’s only with expert advice that you will find the best route for you.
It’s highly recommended that you hire a business formation attorney to help you start a new business, as choosing the wrong corporate structure or making mistakes in the paperwork can be extremely costly and difficult to resolve.
This step will also ensure your personal liability is protected, so if things go badly at work, your personal assets and bank accounts are not at risk.
To Draft Partnership Agreements
If you start a business with a partner, then a business formation lawyer can draft a partnership agreement that defines the rights and demands of each partner.
Arguably, even more importantly, you will need to define how the partnership will change as the business grows. For example, what happens if one partner wants to leave the business?
If you don’t plan for these potential circumstances, the business could collapse, or you could end up on the losing side. With a business attorney, you can plan for these potential future legal issues to protect both sides and the business’ long-term interests.
To Protect Intellectual Property
Patent protection safeguards any inventions, products, brand names, logos or slogans from rivals looking to steal your shine.
With the help of a business lawyer who specializes in intellectual property law, you can put up shields in advance. However, doing so requires a lot of research into areas such as copyrights, patents and trademarks – with a lot of paperwork!
As a new business owner, you won’t want to spend your days taking care of these technicalities rather than developing your products or services.
To Draft Contracts and Agreements
Your company will have a list of documents and agreements that need drafting. These may include operating agreements, bylaws, NDAs, sales contracts, delivery agreements and equipment leases.
One mistake in any of these contracts can leave the door open to liability or have the contracts effectively become useless. These contracts will also protect your business if, for example, a supplier doesn’t uphold their end of a deal.
You can’t afford to have mistakes in the contracts. A business lawyer can review your legal documents and ensure every sentence is watertight – saving you money and time.
Common contracts for new businesses include:
- Services Agreement
- Employment Contracts
- Purchase Order
For Reviewing Lease Agreements
When a new business leases space, you need to ensure the business signs up for the amount of land you asked for.
An attorney can review the lease documents, ensuring the terms are flawless and favorable.
For Tax Advantages
While many new business entities and owners can fill out their taxes alone, that doesn’t mean they’re optimizing them.
Reputable law firms and their lawyers can help you reduce your tax burden by utilizing all the possible deductions and legal loopholes.
For example, they might advise you to expand your business into another state, choose a certain type of legal structure or plan to protect your wealth through estate planning.
Although an attorney will set you back a few hundred dollars in legal fees, the potential tax savings could be in the thousands.
For Out of State Expansion
Imagine you want your business to operate outside of Florida. Whether overseas or in another U.S. state, your business must meet government regulations and have the right permits.
This is a legal minefield. But a business attorney can take the reins, authorizing your business to make money in new locations.
To Remain Federal and State Law Compliant
Over time, federal and state laws are likely to change. As a business owner, you must stay on top of these to ensure the business remains compliant with regulations, requirements and business licenses.
An attorney will inform you of any changes and help you adapt optimally.
For General Business Advice
Finally, business lawyers from reputable law firms will have seen it all. They’ll be able to provide critical advice on issues from agreements, litigation, formation, investments and even sales.
Having a lawyer involved from day one can help you avoid common mistakes and build an ongoing link to a legal expert over time.
Read related: Common Types of Business Litigation
Things You Can Do Without a Business Lawyer
There are, however, many steps that you can complete without the assistance of a business lawyer. In the ideal world, you should still use a legal professional to ensure watertight security and to save you time.
- Write a business plan
- Choose your business name
- Register your business name
- Apply for an Employer Identification Number
- Open a Bank Account
- Apply for Business Licenses and Permits
Contact a Business Litigation Attorney in Florida
Contact our Florida business formation attorneys if you are looking to start a new business or any legal assistance for your launch.
Our team regularly helps businesses of all sizes, from small LLCs to large corporations, to maintain a solid and optimal legal standing.
U.S. News and World ReportsTier 1 Law Firm, Battaglia, Ross, Dicus & McQuaid, P.A., has extensive experience in the business world, We welcome you to contact us with a free consultation.
CALL (727) 381-2300 today for a free case review.