Small Business Legal Needs

by Justin on June 25, 2017

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Starting your own small business is an invigorating experience. It takes a great deal of confidence in one’s self to put your entire future in your own hands. Many people talk about quitting their jobs and becoming their own boss, but very few actually follow through on it. It can be difficult to risk your family’s future to follow your dreams, but taking risks is what life is all about. Sometimes it is easier to face the consequences of following a dream rather than wondering what might have happened the rest of your life.

Small businesses are the lifeblood of the United States. All businesses start small, and some go on to become large companies. McDonalds started with just one restaurant opened by two brothers that wanted to create fast food service without the long wait. There is always a chance that your small business that was created out of your garage could turn into a company worth millions

During the planning phase for your grand opening of your new business, there are many things that need to considered. Is the business going to be entirely online or housed in a physical building? Are you going to have a partner? Will you be hiring employees to help with the business? Are you going to be offering a service or selling goods? And perhaps most importantly, do you know the legalities that go with starting a business?

Legal Steps to Follow

The first step you should take is to determine whether your business will be a sole proprietorship, partnership, limited liability corporation, or s-corporation. Your choice will determine how you file your taxes, legal protection, and limiting your liability so your own home and possessions are safe if there is a lawsuit.

Another step to take if you are in business with a partner is creating a contract between the two of you detailing what would happen in certain situations. If one of the partners wants out, then it would be beneficial that the other partner gets to buy their half rather than someone from the outside. Divorces happen all the time as well, and not protecting the business from an angry spouse could lead to the end of the company. Also, what would happen if one of the partners passed away? Does complete ownership go to the person that is still alive? All of these situations should be listed in the partnership contract before the business begins making serious money.

Most small businesses are working with limited resources. Hiring an employee or two is a huge step for someone just beginning their business. Even the greatest employee/employer relationship can turn sour over time. A no-compete clause in their employee contract could save you from self-created competition down the road.

These are just a few of the instances where a lawyer could prove to be instrumental in the growth of your business. There are risks when opening up your small business, and you cannot afford to forgo necessary legal services in the beginning. You might be saving a few hundred dollars at the time, but it could cost you everything down the road.

Finding an experienced small business lawyer will give you immediate peace of mind.  Having legal services for small business to enjoy the benefits of a full in-house legal team would be an ideal situation. The right lawyer from the correct law firm can cover all the bases needed for your small business. Do your research and ask other small business owners for their advice. They may be able to help guide you through their own experiences that they have gone through.

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