Starting a new business or company requires lots of commitment and effort and many details are involved. It is necessary and essential to ensure a strong foundation by paying attention to the legal aspects of running a start-up.
The tendency of employing a lawyer in starting up your new company will be wholly dependent on the kind of company it is. Sole proprietorships, for example, won’t require you to register your business in some areas and will give you no reason to employ a legal team. In the case that the proposed company is a limited liability company, a corporation, or a partnership, there will be a need to employ a lawyer to handle legal responsibilities such as preparing bylaws, compiling partnership agreements, and registering the company with the government, amongst others.
Listed below are three major reasons why you need a lawyer when starting your company.
Potential Errors
You may have an existing belief that you can easily download templates of tax forms and other incorporation documents and make self-compilations to cut down on cost. This may eventually spell doom for the company as many of these forms and materials are not business-specific and some may be lacking necessary details that only a lawyer would note. It is therefore encouraged that you seal all plugs and loopholes that may result in lawsuits by employing a good startup company lawyer ahead of time.
Attention to Legal Tasks
Starting a new company will have your attention divided; it will, therefore, be wise to employ a lawyer who is able to handle legal tasks, giving you more time to sort other issues. He or she will be able to handle legal documents of all types and ensure that the start-up is being established appropriately. He or she will be able to give legal advice in cases of registering your business name and names of company products and reviewing agreements on leases and contracts. In the case where you will be employing a number of workers, the lawyer is able to draw up an appropriate employee agreement for every role and office to avoid future litigation.
Lawsuits and Litigations
No company is too young to be sued, especially when it is seen as a threat by already established competitors. There are different means through which such established companies try to intimidate new businesses, making it necessary to have a company lawyer on staff.
Also, in situations where there are disciplinary or performance-related issues with employees, issues of discrimination, or a case of wrongful dismissal, it will be better to have a company lawyer represent your organisation rather than employing a lawyer who has no knowledge whatsoever of the company and its ideals.
