6 Reasons to Hire a Small Business Attorney for Your Startup
After making the life-changing decision to start a business, you need a reliable legal team to ensure you don’t overlook any important startup management protocols. Below, we’re going to share 6 reasons to hire a small business attorney for your startup, so that you can grow your business the proper way.
6 Reasons to Hire a Small Business Attorney for Your Startup
Starting a small business can be exciting yet intimidating as you would need to navigate through uncharted territory, including the legal aspects of managing a business. With the help of a startup lawyer, you can obtain these benefits and enjoy the fruits of your labor.
Protect Your Intellectual Property
One of the most terrible things you can experience as a startup entrepreneur is having other people steal your golden idea and benefit from it. This can happen if you don’t have the proper legal documentation.
Legal firms that specialize in intellectual property and patents, like Goldstein Patent Law, can guide you in filing applications for patents, trademarks, and copyrights. A startup lawyer can ensure you use the right wording and include confidentiality agreements to protect your idea or invention.
Clarify Banking and Financing Needs
Opening a new bank account is an important part of managing a startup business. Combining your personal money and business finances in a single account can cause chaos when it’s time to handle payments.
Moreover, there are several types of financing options for small businesses. When applying for a credit card or loan, a startup attorney can help you select the right bank, as well as the type of accounts you should open.
Understand Startup Protocols and Legal Requirements
Choosing a business entity is among the most crucial requirements you need to process. Depending on your location, some business entities would require you to register with the state for legal recognition. Likewise, you need to obtain a business license from the local municipality you would like to operate.
A startup lawyer can help you understand the differences between sole proprietorship, partnership, LLC, and corporation. Without a startup lawyer, you may risk selecting the wrong entity, which can make you liable for the wrongdoings of partners or employees.
Develop a Partnership Agreement
Suppose your business partner is your sibling or best friend who has the same vision as you do for the company. However, there may come a time when you need to face conflicting ideas, especially in terms of decision-making.
If a fallout happens without a partnership agreement in place, you may end up dealing with litigation or disputes. Make sure to have an attorney who can address essential arrangements between you and your partner. This may include profit-sharing, equity splits, a notice of withdrawal, and division of responsibilities.
Avoid Tax Problems
While startups have varying products and services, every business will need to pay local, state, and federal taxes. Unfortunately, 22% of small business owners don’t know their effective tax rate, causing problems in their investments, income, and savings.
If you don’t pay your dues or you neglect them altogether, you will fall on the Internal Revenue Service’s watchlist, which can be the worst way to lose revenue. Save yourself from this hassle by hiring a small business attorney who can help you go through tax issues and settlements.
Secure an Insurance Policy
Business insurance protects your startup in the event of certain types of financial and economic losses. As a startup business owner, you are responsible for getting insurance to cover things such as:
- Accidents endured by employees or customers on-site
- Employee claims, disputes, and incidents
- Property insurance in case of natural calamities
- Vehicles for transportation and deliveries
Since there’s no one-size-fits-all insurance plan, you’ll need the assistance of small business lawyers to find the right insurance plans.
Conclusion
Whether it’s to protect your patent, deal with taxes, or manage policies, the right small business attorney can help grow your startup. In this way, you can set up a business that minimizes liabilities and guarantees profits.
