When starting a small business, most entrepreneurs are always focused on the ultimate goal – making lots of profits. In most cases, business owners forget that starting a business involves many legal formalities depending on the industry and type of venture.
For instance, a sole proprietorship requires different formalities compared to a limited company. The process of starting a small business is very involved. Those who decide to start a business on their own need to protect the company and themselves from obligations and liabilities. For this reason, it is essential to hire an experienced attorney for your business.
1. Setting business structure
Coming up with the right structure for your business is a crucial process when starting your business. You can encounter many legal issues along the way if you fail to structure your business properly.
Your small business may be more vulnerable to liabilities if you set up the wrong structure. If you want to understand the process of coming up with a business structure, tax obligations, and employee inquiries, you need an attorney to hold your hand.
2. Contract drafting
As a small business, you are probably going to involve yourself in different contracts. A contract is essential to ensure both parties meet their obligations. However, in case there is a breach of contract, your business can lose a lot.
To ensure there is no room for a contract breach and you hold the party accountable for the breach, you need an experienced business attorney to draft the contract. When preparing a business contract, you must ensure all the essential terms are included. An attorney helps you understand all the legal terms used in the contract so that you make the right decisions before you sign it.
3. Protection of intellectual property
By starting a small business, it means you have a great and unique idea. Every business is unique in itself, and that means it holds the right to intellectual property. You have to protect different business elements like trade secrets, business logo, product design, marketing materials, and services. Your attorney can help you file for copyright, patent, or trademark to protect your intellectual property from theft. When you protect your business ideas, you can stay ahead of the competition and remain unique in the industry.
4. Raising capital for business
Every business needs to raise capital to grow and meet expenses. Your business needs to ensure income and distribution records are always in the right hands.
Additionally, companies should come up with different means of raising capital like crowdfunding and IPOs. An experienced attorney can help your business choose the proper procedures to raise money and grow your business fast.
Starting and running a successful business involves a lot. Again, to ensure your startup meets all the legal formalities for licensing, you need to have the right people in your team. An experienced lawyer can help you navigate tax obligations, liabilities, contracts, and intellectual property issues.