Small Business Law
The legalities of running a small business, from formation to compliance, contracts to disputes, can affect the success of your venture. That is why you need an experienced attorney to guide you through the legal landscape and protect your business at every turn.
When you hire a business attorney who also deals with small business for your company, they can perform several functions. Your company should have a relationship with a small business lawyer who is intimately familiar with what you do and can help your business.
Here are some services a small business attorney can provide to your company.
Selecting the Appropriate Business Structure
Choosing your business form is one of the most important decisions when beginning your business. Your decision will affect how your business operates daily and other critical matters, such as taxation.
You cannot take this choice lightly, and it must reflect the unique aspects of your company. If you do not choose the proper business structure, you may even find yourself personally liable when something goes wrong.
A small business lawyer can explain the individual facets of each business structure and give you professional advice about what may work for you. They will help you consider factors that may affect your choice in the short and long run. Your small business attorney will discuss your goals and objectives before helping you choose your best option.
Drafting Necessary Corporate Documents
Once you have selected the appropriate business form, you need to draft actual documents that will bring your company into being.
These documents may include:
- Articles of incorporation
- Operating agreements
- Partnership agreements
- Bylaws
- Shareholder agreements
- Business plans
- Non-disclosure agreements
You need a lawyer to draft your business documents correctly. Any mistakes may constrain how you run your business, and they can cause delays in getting your company off the ground.
You can show prudence and foresight when a small business lawyer drafts these documents for you, ensuring they are accurate.
Relying on off-the-shelf templates you may find online is a recipe for disaster.
Securing Licenses and Permits
Depending on your industry, your business may need specific permits and approvals to operate. Approval for these permits is not guaranteed. You may need to undergo a lengthy application process, and your business and plans may face extensive government review.
You may also need zoning approvals for your place of business. Zoning and land use laws can control and restrict property use, and you may need zoning approvals or variances to operate your business.
A small business lawyer will explain the zoning and land use laws affecting your business and deal with the applicable boards and government agencies.
Drafting and Reviewing Your Contracts
Contracts are at the core of your business; every relationship should be in writing and on paper. The terms of any agreement should give you clear rights and obligations.
We cannot overstate the importance of contracts to your business. These documents contain the rights that you can enforce. At the same time, someone else may have certain expectations of you.
The actual language of the contract matters because it is the final expression of your agreement with the other party. Every word and comma takes on importance because a court will look at the document itself after a dispute about the performance of the contract.
Therefore, you need a small business lawyer to participate in negotiating, drafting, and reviewing your business contracts. If you take a DIY approach to contracts, you can end up with ambiguous documents that lead to litigation.
You may find that the actual agreement is different than what you thought. A small business attorney can ensure that the contract’s language protects your rights throughout the performance of the agreement.
Employment Law and Support
When you hire workers for your business, you will always have some form of contractual arrangement with them. You must follow the law when hiring, employing, or terminating workers.
Along the way, you may face difficulties from situations with individual employees.
A small business attorney can help your business in employment law areas by:
- Drafting and reviewing employment contracts with individual workers
- Providing you with legal advice when you need to terminate an employee
- Making sure that you pay your employees in accordance with state and federal law
- Representing your business when you are in any employment lawsuit
- Assisting you if you are in a dispute with an employee
- Advising you on compliance obligations that you need to follow when you employ people
- Drafting, reviewing, or revising your company’s employee handbook
Employment lawsuits are one of the most common types of litigation for a business. Although you may not entirely avoid every lawsuit, you can lower your risk when you hire a small business attorney and get their advice on employment matters that affect your company.
Outsourced General Counsel
As a small business, you will need ongoing legal support from someone familiar with your company. You may not have the resources to hire a full-time lawyer who works directly for your business.
To hire full-time employees before your company has a fully established and consistent revenue stream can leave you facing financial risks. You do not have to hire a general counsel before your business reaches a certain critical mass.
A small business lawyer can perform the same functions as your outsourced general counsel and will be alongside you as your business grows. They can answer any questions that you may have and provide you with legal advice when there is a need.
Your attorney can prepare you for when you need to hire your general counsel, assisting you in building the legal infrastructure your business needs. Even at that point, your small business lawyer will work with your general counsel for any special situations that require the help of an experienced attorney who knows your company, such as litigation and compliance issues.
Drafting Policies and Procedures
Your business needs policies and procedures in several areas as it grows. These policies are in place to establish uniformity and to protect you from possible litigation and enforcement action.
If you face a lawsuit, you will inevitably have to present your policies and procedures at some point in the legal process. Your legal situation can worsen if you do not have any or follow the guidelines.
A small business lawyer can draft policies and procedures for you in some areas, including:
- Occupational safety and health
- Employment
- Environmental compliance
- Social media usage
- Ethics
- Employee complaints
- Network security and data protection
Then, your small business attorney may review your business operations to ensure you follow policies and procedures. They can conduct audits on your behalf to protect you from potential risks. Your business lawyer may revise your policies and procedures as necessary, whether due to changes in the law or your business.
Helping Small Businesses with Compliance
There are a myriad of rules and regulations that your business must be aware of in several areas. These rules can apply to your specific industry or companies in general.
You must mind the law and follow it to avoid problems.
For example, if your business hires employees, you should be aware of the vast landscape of employment law. You must adequately classify your employees and pay them according to the law. At the same time, you cannot discriminate against employees in any way. Failure to follow these rules can lead to a costly lawsuit.
If a government agency contacts you about your compliance with the law, a small business attorney can communicate with that agency. They can defend you in enforcement proceedings and negotiate a potential settlement agreement with the government.
When the government sees that you are aware of your legal obligations and have taken steps to follow them, it can help when you are facing potential enforcement action.
Handling Disputes and Litigation
Unfortunately, your business may inevitably not see eye-to-eye with others at times. You may end up in a dispute, whether it is about competition or the terms of a contract.
Litigation can impose a significant expense on your small business, taking your focus away from generating revenues and snowballing into a possible lawsuit. Although you may sometimes need to go to court, not every disagreement has to end in a lawsuit.
A small business attorney can represent you if you find yourself in a business dispute. They can communicate with the other party’s attorney to resolve the disagreement before it worsens. You may negotiate a settlement agreement or modify the terms of your contract.
If you need to litigate, your small business attorney will represent you pragmatically yet aggressively. They can handle your case as it moves through the court system, gathering evidence and presenting your position.
Your small business lawyer will seek to negotiate a settlement before your case reaches trial, as happens in many lawsuits. You cannot and should not go it alone when business controversies exist.
Handling Major Corporate Transactions
At some point, your business may acquire part or all of another business or sell itself to another company. Corporate mergers and acquisitions are complex transactions that require a great deal of preparation.
When it comes to these transactions, a small business lawyer can help you by:
- Assisting in the negotiation of the terms of the transaction
- Drafting or reviewing the contract that documents and memorializes the transaction
- Helping you structure the transaction based on legal considerations
- Conducting due diligence on the company or part of it that you are buying
- Advising you on tax considerations associated with the deal
- Providing compliance advice and explaining the regulatory landscape that you may face
- Addressing any legal challenges that may arise during the deal
Providing Your Business with Legitimacy and the Appearance of Professionalism
As your business grows, you can raise capital or seek new clients. Representation from a small business lawyer can cover your losses, and your company will appear more professional.
When you try to borrow money, you can expect a lender to do much more than kick the tires on your business. They want to know that you are a safe risk for their capital.
A lender will understand that you take your legal obligations seriously when they see you have a small business attorney. They may realize there is less chance that your business can suffer a disastrous loss due to an unexpected contingency because you have planned better.
The same goes for your business when seeking out new partners or clients. Hiring a small business attorney creates an impression of safety and stability, showing others that you value compliance and planning.
Your small business lawyer can partner with your company as you grow. They can become intimately familiar with your operations and anticipate areas where you may experience challenges in the future. Working with one attorney can lead to a productive relationship where you and your small business lawyer understand each other.
A Small Business Lawyer is Standing By
You should hire a small business lawyer before you begin working on standing up your company or as soon as you realize that you have any legal process or challenge.
It always helps to speak with a small business attorney to learn what they think of your situation and understand how they can guide you. They understand the unique challenges that small business owners face and will work hard to guide you through them with confidence.
Moreover, should disputes arise, your attorney will fight to protect your rights and interests. Hiring an attorney can take a lot of hassle and stress off your plate.
Running a small business involves dealing with complex and ever-changing laws and regulations.
By partnering with a small business law attorney, you know you have a trusted legal advisor, helping you address legal risks and protecting your business from potential liabilities. Then, you can focus on doing what you do best – growing your business and achieving your goals.