Starting a New Business: Legal Considerations

Entrepreneurship is alive and well. But, starting a new business is often a daunting task. The challenge of turning a dream into reality stops many people from getting a potentially profitable enterprise off the ground. Many serious issues need careful consideration before any business is ready to provide a product or service to the consumer. For instance:

• Advertising and marketing options
• Startup costs
• Funding choices
• Buying an established business
• Rent or own the space for a business
• Employee contracts
• Expansion capabilities
• Salary and reinvesting profits

The list of business issues continues to grow. Legalities are a big concern. People starting a new business generally do not have all of the information and experience necessary to launch a successful business without professional help. Thus, hiring a business lawyer is an excellent resource for a successful venture. While the attorney handles all of the legal details, the entrepreneur can concentrate on preparations for opening day.

Getting Legal Representation

A business lawyer is a necessity for anyone starting a new business. Legalities are a part of any money-making venture. But, the need for a trustworthy lawyer does not end when the front doors open. The relationship between entrepreneur and attorney should last as long as the business is open. Legal counsel becomes vital when a disgruntled former employee or customer opts to file suit, or simply makes life miserable. In addition, a lawyer helps with all of the day-to-day concerns of a profitable business. For example, legal assistance comes in handy for:

• Drafting sales agreements
• Sale or lease of assets
• Commercial leases
• Buyer/seller agreements
• Liquidating or selling a business

A good lawyer is a great asset from the moment an individual decides to turn a business concept into a profitable product or service, until the entrepreneur decides to retire, sell the business, or close the doors for the last time.

Separate the Personal and Professional

A good business lawyer helps business owners keep personal assets separate from the business assets. The best attorney prepares an entrepreneur for every possible outcome. Hopefully, the venture is wildly successful, and the business will serve the public for many years. However, the statistics support the closure of the majority of new enterprises within the first 5 years.

So, to protect the owner, a lawyer will make sure the business is a separate entity from the house and family car. The business needs a separate bank account, credit rating, identification number, and source of income and investment. Lawyers know about:

• Partnerships and limited partnership
• Limited liability companies
• Corporations
• Private ventures
• Franchises

Unfortunately, many individuals tie the home into the business. Then, if the enterprise is unsuccessful, the disenchanted entrepreneur loses everything. Good legal counsel will make sure all financial eggs do not land in the same basket.

In short, a business lawyer is a vital asset for any new business enterprise or a well-established and profitable business. While the attorney deals with all of the legal issues and documents, the entrepreneur concentrates on providing the best product or service to the consumer.

• This page is provided for informational purposes only. If you need advice regarding business laws, click here to talk to Michael Holland or a Business Lawyer near you.