Starting and running a business comes with its set of challenges. One of them, of course, may require the advice and assistance of an attorney. Having the right legal strategies in place will give you a piece of mind just in case things go wrong. That’s why in this guide, we’ll be going over the legal strategies that you need to know as you’re operating your business day after day.
Whether you’re running a small business that employs ten people or something a bit larger with over 100 employees, having the right legal strategy in place will ensure that you are ready to take on any situation where your lawyer can play the role of an advocate and negotiator on your behalf. Let’s get started.
Choosing the Right Business Structure
When you’re starting a business, choosing the right structure may be one of the biggest legal-related decisions you’ll ever make. You have options to choose, so which one will fit you best? Here’s a look at the following examples:
- Sole Proprietorship: Sure, it’s easy to establish, but you will be liable for any business debts that will be incurred.
- Partnership: This is similar to the sole proprietorship, however the liability will be shared among the partners.
- LLC: This offers liability protection and flexibility, especially when it comes to the tax aspect of the business.
- Corporation: Provides limited liability. However, there are more regulations and tax implications if a business is structured in this manner.
- Cooperative: It is owned and operated by its members. The profits are shared amongst them.
Before deciding on the right for your business, weigh the pros and cons of each. From there, you get to decide which one will better suit you.
2. Protection of Intellectual Property
Intellectual property (or IP) will include but are not limited to, trademarks, copyrights, and patents that represent your products, services, ideas, and brand. Protecting your IP will be critical, especially when you are placing yourself at a competitive edge and making sure your business lasts a long time.
For trademarks, you can register your business name, the logo, and any distinctive signs that are related to it. For copyrights, you can protect your original work, designs, marketing material, and written content so you prevent others from copying it otherwise known as infringement. Finally, patents will safeguard any innovations or inventions you may have.
3. Mitigating Liability and Risk
Risk management will be critical when it comes to protecting your business from legal issues and financial losses that are unforeseen. This includes finding a personal injury law firm in the event of an accident or injury that happens on your premises. Such incidents may involve employees, customers, and others who may be present on the premises.
In addition, it is important that your business invests in insurance to cover these liabilities, which include property damage, employee injuries, and other legal claims. Finally, your business must be compliant with any laws or regulations that may apply. Criminal charges could apply if certain laws and regulations are not followed. For that reason, you may need a criminal defense attorney in case such situations happen. But nonetheless, managing these risks will save you not only costs but also the headaches that come with dealing with legal battles.
4. Creating Contracts and Agreements
Contracts and agreements will certainly be considered legal documents when it comes to any business transaction. These will define the expectations, terms, and responsibilities of the relationships between your business, the customers, suppliers, employees, and others. So what could a legal strategy be related to contracts and agreements?
An attorney will be able to look over such contracts and agreements, such as sales contracts, where the terms and conditions need to be clearly outlined to avoid disputes. Employment agreements should not only define the roles and responsibilities but also the expectations placed by you that your employees should follow. Lastly, you have the service contracts that you issue to your suppliers and vendors. These service contracts should specify the scope and terms. In regards to the services that are being provided to you.
5. Compliance with Employment Laws
Employers must be compliant with federal, state, and local employment laws. As a business owner, you could consult an attorney to see if you are complying with them properly. The laws are designed to protect employees’ rights while also outlining your obligations as an employer. Such laws include wage and hours laws, anti-discrimination laws, and safety regulations.
In the United States, minimum wage and overtime pay requirements will vary from one state to another. That’s why you can consult with your attorney. If you have any questions regarding that. Also, the Occupational Safety and Health Administration (OSHA) has standards that you need to follow to ensure that your work environment is safe for all employees. Anti-discrimination laws are designed for Equal Employment Opportunity regulations, designed to encourage persons to apply regardless of their race, orientation, gender, religion, and other factors.
6. Tax Obligations
Of course, taxes can be a stressful topic for business owners. That is why you can rely on a lawyer to help you navigate through the complex obstacles since they change frequently. It is important to stay in the know, especially when it comes to income tax, sales taxes, and also employment taxes as well.
Final Thoughts
As a business owner, it’s always a great idea to have an attorney in your corner to handle all your legal needs. However, there may be times when you may need an attorney that specializes in a certain law. For example, if you are looking for a real estate attorney while purchasing a new site for your franchise, they could be able to help with any challenges such as the lease agreement. Nonetheless, there’s always an attorney who has a specialty that will benefit business owners like yourself.
So please reach out to them at any time in case you have any inquiries that are related to what legal parameters you need to follow. Attorneys will make sure your business complies so you can focus more on the priorities that matter most.
