The cost of a lawsuit or litigation against a small business can cost anywhere between $3,000 and $150,000. You might not think that you have to worry about that yet, because you’re just starting your business. The fact is that you have other legal concerns that can have far-reaching effects on your business. Read on to discover why you need to hire a small business lawyer when you start your business.
Table of Contents
1. Business formation
You have to choose your legal structure of the business when you start your business. Choosing the wrong business structure can leave you personally exposed if you get sued. Your business formation can impact your taxes, too. You want to consult with a small business lawyer to make sure you have the right legal structure.
Every small business should have an attorney draw up and review contracts before you finalize any new agreements. A freelance website designer has to have a contract that outlines when payments are made and what the deliverables are. A personal trainer will need liability contracts. A business with employees may need non-disclosure agreements and non-compete agreements.
3. File Trademarks and Patents
Your business may depend solely on an idea for a product. That idea is your intellectual property and it needs to be protected. An attorney can help you protect your most valuable assets by filing trademarks and patents. That will give your business a competitive edge and give you the right to sue anyone who infringes on your intellectual property.
4. Real Estate Contracts
Do you plan to have a physical location for your business? You’ll need to buy or lease a commercial property. Whether you’re renting a small office space or buying a warehouse, you need to deal with complicated contracts. A small business attorney can help you make sense of these contracts and negotiate contract terms that work in your favor.
5. Website Policies
One area that businesses have a high degree of exposure is on their website. Small businesses regularly collect information like email addresses to communicate with potential customers. If you attach your website to analytics and advertising tools, those programs collect information that tells you what device a person used and where they’re located.
Hiring a Small Business Lawyer is a Smart Move
You have many decisions to make when you’re starting a small business. One of the best decisions you can make early is to hire a small business lawyer. You’ll have the right business structure, website policies, and contracts in place that will shield your business from lawsuits and legal issues.
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