Understanding the Financial Benefits of Hiring a Business Law Attorney
Becoming a small business owner is the ultimate career goal of many individuals.
Maintaining a profitable business requires owners to have a complete understanding of where business risks lie and the ways in which to mitigate (or avoid) their negative impact on business operations. One of the most innovative ways to manage business risks is to work with a knowledgeable business law firm, professionals who can oversee ongoing issues and help the business identify and alleviate emerging risks and liabilities.
The Financial Benefits Provided By a Business Law Firm
When hiring a knowledgeable business law firm, the following are among the many financial benefits offered –
A Business Law Firm Can Help You Select & Establish the Appropriate Structure for Your Business
Deciding on how to structure your business is one of the first but most important business decisions a business owner faces. A business attorney can help explain and evaluate the available business structures that would offer you the most legal protection while mitigating your tax obligations. First, though, the attorney would need to analyze the business objectives in relation to the owner’s personal & financial situation. The following are the business entities most commonly used –
- A Sole Proprietorship
- An LLC – Limited Liability Company
- A Partnership
- A Corporation or S Corporation
Each of the above-noted business entities offers different benefits, some of which overlap. This is where having a knowledgeable business attorney can be of great assistance as they possess the skills to determine which option will be most suitable and benefit the business and owner.
A Business Law Firm is a Great Resource For A Business Seeking to Raise Capital
Business attorneys can help when a business wants to raise capital. New businesses require capital to begin while existing companies raise capital to expand their business, enter new markets, or add new product lines, to name a few business objectives.
An experienced business attorney typically has a network of resources – established connections with lenders and venture capitalists, and other investors who are always in the market for a new idea or a business/investment opportunity. Finally, a business attorney will also provide your business with the credibility required to raise the required capital.
A Business Lawyer Can Ensure Negotiations for Your Business are Lawful & In Your Best Interest
A business attorney offers the skills to review and negotiate agreements with other businesses, vendors, or even customers. Business decisions usually involve the execution of some form of a written agreement (which is often a legally binding document) or contract – many with serious financial & legal consequences.
Many of these documents, primarily financially related paperwork, may include various provisions and covenants that would be outside the wheelhouse of most business owners. With a representation by a knowledgeable business law firm, you can rest assured that someone with a knowledgeable eye will review the terms and negotiate those points they deem necessary – prior to you making a legal commitment!
A Business Law Firm Protects the Business From Potential Compliance Violations
Businesses (and consumers) are required to act and make choices within society’s legal framework or face the consequences of their actions that violated established laws or rules. Businesses typically face additional regulation and compliance requirements than the average consumer. Enhanced regulatory compliance is usually set forth to ensure the safety of workers and the public.
Business compliance and liability concerns stem from a number of business operational factors –
- Business Law
- Trademark Law
- Finance Law
- Intellectual Property Law
- Employment Law
- Taxation Law
- Zoning Ordinances, to name a few of the potential liability claims.
A Business Law Firm Can Help With Collections
When a situation arises, and a client fails to pay the required invoiced fees, it can be immensely helpful to have another professional follow up because of the paperwork and procedural requirements that must be followed to legally pursue unpaid fees.
A Business Law Firm Can Help Negotiate Repayment Terms
Part of the challenge of being a successful business is having the knack and skill (or hiring someone who does) to help when internal or external factors that may create cash flow crunches. An experienced business attorney can help to negotiate with current creditors and vendors to more favorable repayment terms for the business. In some scenarios, a knowledgeable business lawyer can simply extend the terms of the repayment.
A Business Law Firm Can Help Set Up an Online Business
The modern business landscape, plus the pandemic, combined to accelerate plans for brick-n-mortar retail to develop (or further enhance) an online e-commerce presence. Online businesses must recognize the unique legal nature this poses, like –
- The FTC Regulations that are required for interstate commerce.
- Sales tax structures for interstate sales, to name a few.
To complicate matters, every state sets forth the way in which they handle interstate sales. A knowledgeable business firm can help evaluate potential legal issues that may arise, as well as ensure taxes are paid correctly. If possible, a qualified attorney may help mitigate a business’s tax liabilities.
Support with Compliance in the Hiring Process
As a business expands, it is likely that a business owner will need to hire team members to support its growing operations. The excitement that a business is in need of additional employees will likely be quickly replaced by a business owner who is facing local, state, and federal compliance requirements. Depending on the occurrence, intent, and value, compliance violations may lead to potentially costly legal consequences.
For instance, many business owners have no idea that there are local and federal laws that apply to the process in which you interview. Employment laws cover a multitude of important issues – from hiring to salary mandates, medical leave, and required breaks, among others. But note, even well-intentioned businesses can inadvertently violate employment laws on an everyday basis.
A business lawyer can also help draft essential employment agreements and related paperwork to ensure your business remains compliant with applicable law. A business lawyer is also capable of guiding a business through all necessary requirements in the employment of others – from liability to worker’s compensation insurance and everything in between.
Further, a business attorney can develop the business’s employee handbook to help the business avoid potential employment law compliance issues.
Support the Business With Dispute Resolution Services
As a business owner, it would be wishful thinking for you to avoid legal disputes with vendors, the competition, regulators, and customers through the regular course of business for your entire professional career. And note disputes of this kind can financially impact the business (or owner), although the magnitude of the impact depends on how the dispute is resolved.
Having a knowledgeable business attorney to guide you through these dispute resolutions can be invaluable. Through their experience, a business lawyer can help to ensure the negotiations you are involved with are fair and you reach for the most beneficial resolution for the business. The business lawyer will also help free up your time to focus on other pertinent areas of the business.
A Business Law Firm Can Help Protect You From Litigation
As noted above, businesses, by their very nature, are subject to the exposure of liability. Some liability can be tempered through the purchase of specific business liability insurance. However, because even a solitary lawsuit can wipe out a business, there are times when an attorney is required.
Business owners cannot operate from a position of fear, but that does not mean choosing to overlook potential risks. Risk and liability can be reduced with the help of a skilled business attorney as they have the proficiency to review –
- Business contracts and related agreements.
- Human resource documents.
- Company policy handbooks, among others – to help identify potential litigation red flags before they show up.
Unfortunately, a business cannot always avoid litigation. While protecting the business from potential litigation is an essential business objective, it is equally important to use a legal expert to handle a lawsuit, should it occur.
Freedom From Worry
Although challenging to put a price tag on, having a knowledgeable business firm to help manage the many aspects of your business will reduce the undercurrent of worry and concern many business owners contend with. Running a business is stressful enough, and having a business attorney can help alleviate much of the stress related to negotiations, contracts, compliance, and employee issues, among others.
The reality is that if a business owner wants to reduce the stress and anxiety of running a business, a business attorney is a smart way to accomplish that goal.
Too many business owners learn the hard way that it is far less costly to use a business lawyer than it is to find yourself on the losing end of a lawsuit. A business law firm has the tools, experience, and know-how to protect a business. These skills will ultimately save the business money in the long run.
A business attorney involved in your business means you can worry less and focus more on the business you are trying to build or expand.