Business owners go through a multitude of difficulties not only while setting up their business, but even after the business is thriving and on the go. There are many legal complications that are involved in a business. In fact, almost every sphere of running a business has a legal aspect to it, be it buying property, hiring employees, or getting a license. If you are running a big business, an in-house team of lawyers works better than having to hire a lawyer every time you need one. For a small business, hiring one lawyer to take care of all the legal complexities is advisable.
1. Preparing for the Worst
You can never anticipate the challenges you may have to face in your business. You might not want to bother yourself with the legal intricacies of running a business, the legalities involved in procuring a license, the lawsuits that come your way, etc. You might not even be prepared for any of it. In such cases, having a lawyer in your team would be an advantage, so you can concentrate on running a successful business and leave the nitty-gritty of the legalities to your legal department. The lawyers can help you anticipate and avert any future problems likely to crop up.
2. Avoid Legal Problems Before They Surface
Running a successful business is full of legal pitfalls and intricacies that you might not even be aware of. Whether the problem is small or big, if anticipated and corrected in time, it will not only help avoid unnecessary legal issues but also cuts costs. A legal issue that is not handled at the right time could end up being very expensive. An experienced and knowledgeable lawyer will be a great asset in anticipating and avoiding possible future legal complications.
3. Protect Your Interests
Business entrepreneurs are not aware of the legal formalities that are required of them when setting up and running their business. Every country and state has its own set of laws, rules, and regulations that businesses need to follow. Your lawyer can keep you abreast of the do’s and don’ts of your business and keep you free from any ensuing legal hassles. Lawyers are well versed with the minute legalities of running a business and can help you avoid any pitfalls that might come your way.
4. Filing Required Paperwork
Paperwork is the very basis of any business. There are umpteen types of papers to be looked into, contracts to be signed, customer data to be updated, etc. You often need to sign agreements and contracts pertaining to your business. A lawyer will scrutinize the paperwork to check for any loopholes. It is advisable to have a standard contract while hiring for your enterprise. Filing petitions and lawsuits are also down the line of action for a lawyer.
5. Filing Returns and Handling Taxation
Filing returns and paying taxes is an essential aspect of any business. If the returns are not duly filed or there is any discrepancy in the payment of taxes, it could have serious implications, like income tax raids or heavy fines. Lawyers can help avoid such situations by keeping the paperwork updated, making sure that the taxes are paid, and the returns are filed on time.
Any other tax-related issues can be handled by lawyers who specialize in taxation.
6. Handling Punitive Damages
At times, knowingly or unknowingly, there could be cases of harassment among employees. If you are running a factory, there could be unforeseen accidents. If any of your employees is injured as a result of negligence, it could result in having to pay punitive damages. A professional lawyer well versed with the ropes of the law is just the person to help you handle such cases. Your lawyer will also help keep up the image and the goodwill of the company in the face of punitive damages.
7. Protection of Your Brand Name
Every business is based on an idea. You have a trademark, copyright, a patent, a registered brand name that cannot be infringed upon. To protect your rights and your goodwill from being misused by others, you need a lawyer to look into this aspect of your business. Unauthorized use of your registered brand name is punishable by law; that is where your lawyer comes in.
8. Fundraising
Businesses tend to get into unnecessary debts and liabilities and often have to liquidate assets or spread equity. Legal advice is a must to protect you from investors who could end up taking undue advantage of your position. The legalities of all the agreements you sign and all the contracts drawn up are very intricate and not within the understanding of a layman with no knowledge of the law. In such cases, legal advice becomes mandatory to protect you from the loopholes that might exist in the agreements and contracts you signed. You need to know how much of your equity can be safely given out precisely, without jeopardizing your business.
It is not necessary to hire a lawyer every step of the way in your business. Many minor issues can be sorted out at your level. At the same time, it is also true that there are situations where different types of legal help and advice are required. Depending on the size of your business, you may opt for a lawyer to take care of all your legal formalities, or a team of lawyers specialized in fields like registration of your brand name, handling lawsuits, tax-related issues, agreements, and contracts related to takeovers or franchises.
Don’t cut down on the money spent on lawyers; otherwise, you will surely have to pay through your nose to rectify mistakes. If you haven’t launched yet, it’s best to get the legalities sorted before you proceed with your venture to stay on the safe side. It’s also best to hire a lawyer who is familiar with the laws in your state. So, entrepreneurs do not hesitate. Go ahead and hire the best legal brains on the market and watch your business grow.
