Everything You Need to Know About Hiring a Startup Lawyer for Your Small Business
Whether you own a small business or an established organization, you may get sued when you least expect it.
The average American company has an 11.7 percent chance of facing an employee charge. Small businesses can be held legally accountable for violating contracts, committing fraud, breaking intellectual property rights, and more.
A liability lawsuit could cost your business as much as $54,000. Expect to pay more than $91,000 for a contract dispute.
Running a startup comes with its challenges. Even if you don’t expect to be sued, there are other things to worry about.
Common mistakes, such as operating without a license, failing to maintain accurate records, and being late with your tax returns, can result in hefty fines.
The good news is, you can always hire a startup lawyer to help you out. In fact, you should consult one from the very beginning. Read on to find out more!
Does Your Startup Really Need a Lawyer?
A staggering 90 percent of startups fail. Some have brilliant ideas and yet, they’re forced to close their doors within a year or two.
Lack of capital, poor management, and legal challenges are all common reasons for startup failure. Not to mention lawsuits and compliance issues, which may cost you big.
An experienced lawyer can help you prevent and address these problems before they escalate.
He or she will assist you with business formation, partnership agreements, and legal issues. Startup lawyers also provide guidance on how to identify the best financing options and how to protect your brand’s identity.
Like any other business, your startup needs legal support. No matter what products or services you offer, it’s mandatory to comply with the law, obtain licensing, and maintain good records.
Perhaps you’re a marketing guru or have a creative mind. However, you need more than that to run a business and make it thrive. That’s where a skilled startup lawyer can help.
Why Hire a Startup Lawyer?
The first thing you need to do as an aspiring entrepreneur is to incorporate your business. This process isn’t as simple as it seems.
You must decide on a business structure, such as an LLC or partnership, choose a name and location for your organization, get a tax ID number, and apply for licenses and permits. Each type of legal entity, whether it’s a sole proprietorship or corporation, is subject to different laws and regulations.
Furthermore, you may need to hire employees, partner up with suppliers, and make sure your website complies with the law. For example, if you’re dealing with European customers, GDPR compliance is a must.
A startup company lawyer will be on your side and help you tackle each step of the process. He or she will ensure you do everything right and avoid costly mistakes.
Hiring a skilled attorney can increase your chances of success and save you money down the road. These professionals know the ins and outs of the law and can help you with leasing contracts, customer agreements, trademark protection, document reviews, and more.
Get Legal Help When You Need It the Most
With a startup lawyer on your side, you’ll have peace of mind knowing that your business is running smoothly. Attorneys can add value in obvious ways, helping startups achieve compliance and avoid legal mistakes.
You may think that it’s not necessary to hire a lawyer right from the start. After all, you may consult one later on in case something goes wrong. The problem is that fixing mistakes later is more difficult and costs more.
Need one more reason to hire a lawyer for your business? Check out these legal pitfalls for small business crowdfunding and how an attorney can help!