When people think of starting their own business, they usually imagine going through the process with little to no help. But did you know that hiring an attorney to help start your business can save you money in the long run? The laws that apply to start-up businesses vary depending on the specifics of each situation. It is important for business owners to know how to protect themselves from personal liability for business debts and other kinds of obligations. In this blog, we explain the benefits of hiring an experienced lawyer to help you form your business.
- Liability: Each business has its own unique risks to the owner and investors. Personal liability means that your business puts everything you own at risk. Hiring an attorney can help you minimize different risks that you might be liable for. A good lawyer can assess your particular business model and determine what types of protections it will need. Since owning a business can directly affect the economic well-being of you and your family, you should consult with an attorney who is familiar with business start-ups.
- Business Form: Choosing the form of your business (i.e. sole proprietorship, partnership, LLC, or corporation) often dictates your legal responsibilities and potential liability. It can also affect the way your business operates. Choosing the wrong entity can result with you being personally liable for the wrong doings of your employees or partners. An attorney can help you choose the form that reduces your personal risks.
- Contract: Most businesses require contracts for building space, services, employees, and supplies. Because businesses often have agreements between multiple partners, investors, and employees, it is important to make sure that any contracts drawn up are done so correctly. An experienced lawyer will make sure that all of your contracts are in order so you don’t end up in court.
