5 Reasons to Hire a Lawyer When Starting a Business
Starting a business does not always take a huge capital investment.
For example, in the United States, a home-based start-up will only cost the founder between $2,000 and $5,000 to set up. Initially, the business owner is their own investor, marketing manager, legal advisor, and salesperson.
However, successful start-ups must expand at some point. And if you register your business as a legal entity, you will need to hire a lawyer.
Keep reading this article for five great reasons to have a lawyer on call.
1. Solid Structuring Advice
Business and corporate law firms are stocked with lawyers who know about running businesses. After all, many lawyers aim to run their own firms eventually.
Therefore, they will have vast experience with capital structuring, hiring practices, cash flow management, and more. Getting advice from your lawyer on the best ways to structure your business legally will be invaluable and save you money in the long term.
2. Air-tight Contracts
The average person never gets exposure to many aspects of contractual common and business law.
A lawyer who can read any contract you draft or receive can protect you from lawsuits and exploitation. They will look for language that puts your business (or person) in danger or terms that place unwanted obligations on you.
3. General Lawsuit Prevention
When starting a new company, or expanding your business, hiring employees increases the risk of lawsuits. You can minimize this risk by hiring a lawyer or outsourcing your HR structuring to a manager or HR service provider.
Having a lawyer and HR management costs money, and you do not want to incur too many expenses when starting your company. Therefore, we recommend the legal route because you will use your funds more efficiently.
4. Debt Collection
Allowing customers to buy goods or services on credit increases the risk of late payments and bad debt. Having a lawyer on hand to draft collection letters may improve your chances of recovering some of these bad debts.
5. Litigation
If you end up in a legal disagreement with another party and cannot settle out of court, the case must go through the legal system.
Litigation is the process by which a trial lawyer argues your case before a judge. The best attorney to hire for a new company is one who has access to a network of trial lawyers or who is one themselves.
Hire a Lawyer and Improve Your Business Today
When expanding your enterprise, consider hiring a new lawyer.
A reputable, experienced lawyer will give you solid business advice that improves your cash flow and lowers your lawsuit risk. A lawyer can also help you draft bulletproof contracts and structure your business for the best outcomes.
When you hire a lawyer, it is in their best interest to keep your business going, so they keep making money. So you can expect them to work hard for you.
If you are looking for other sources of great advice, check out our blog page.
