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Why You Need a Lawyer for Business Startup

November 7, 2018

If you are thinking of starting your own business, there are many obvious factors to consider. For one, you need to think about which employees to hire, how to enter the market that you're considering, staving off competitors, and what type of structure you envision for your company.

Your attorney is a valuable piece in helping to solve this complicated puzzle. Hiring the right lawyer for your startup team is a critical first step in creating the foundation for a successful business. Not only can an experienced law firm like Hayter | Reynolds help guide you through all of your startup questions, but there are also many legal concerns that must be addressed.

1. Registering, Licensing, and Permits

In Louisiana, a new business entity must be registered with the Louisiana Secretary of State. Putting the proper governing documents in place is critical for a business. An attorney can guide you through the proper paperwork and structure the business in a way that is most advantageous to you.

2. Contracts

Poorly written contracts frequently contribute to the downfall of a business. There are many reasons why you may need to draw up a contract within the first weeks of your startup's existence. Nearly every aspect of a business is governed by a contractual obligation. From building and equipment leases to employee salaries and benefits, a poorly written contract can be extremely detrimental to a business' success. Hiring an experienced attorney to draft and review contracts can prevent costly oversights and help limit your personal and professional liability.

3. Raising Capital

Having a lawyer to offer guidance through this crucial phase of a business startup will be essential in protecting your business and raising capital. During your first few weeks of existence, your business will be very focused on raising money to be successful. After all, it takes money to make more money. When taking loans and trying to secure capital from different investors, contracts must be written to clarify the manner and time period over which your business will be required to pay it all back.

4. Local Tax Laws

Businesses of different types, sizes and industries have to pay different taxes. A lawyer will be beneficial in guiding you through the local tax system and understanding its effect on your business. In these cases, working with an accountant that has knowledge of the local tax regulations is also very important. Ask your attorney for a professional referral to ensure you hire the best accountant for your needs.

5. Liability

Arguably the most important reason to hire a lawyer is to limit your personal liability in your business. There are various entity structures that allow you, the founder, personal protections if your business fails. Your attorney can minimize your risks in this area. Being knowledgeable about your personal liability when forming a business is of paramount importance. An experienced attorney can help ensure that you receive every protection available.

Do You Need a Lawyer For Business Startup?

If you need of a lawyer for a business startup, whether to draft or review contracts, address financial and capital concerns, or limit your personal liability, it is best to hire an attorney from the beginning. The old adage, "an ounce of prevention is worth a pound of cure" has never been more applicable. Hiring an attorney to address legal issues after they arise is always more expensive than preventing them from the start.

The firm of Hayter | Reynolds has aided many successful, local business startups and can help guide you and your business to success as well.