Hiring a lawyer is similar to contacting a firefighter or a plumber for many small company owners: it’s something you do only when you have a problem. When it comes to legal concerns, that approach is dangerous.
Needs such as marketing, sales, staffing, and simply having the business off the ground, especially for new enterprises, may easily prioritize legal difficulties, especially those that don’t appear to be of immediate significance.
On the other hand, smart business planning includes working with a lawyer early on in the process to prevent difficulties and ensure that the company is safeguarded against any legal issues.
If you’ve always decided to run your own company in San Jose, now could be the moment. You’ll need some assistance to get started and maintain moving down the path to success, much like folks who want to reduce weight or quit smoking. A good San Jose business lawyer can assist you in this situation.
Whether you’re establishing a business on your own, with a partner, or with a group of investors, business lawyers are familiar with the rules related to startups and can assist you in avoiding personal accountability for corporate debts and responsibilities.
Below we share pointers on how a lawyer can help you in your business.
While most companies hire a lawyer to assist them with the formation process, new firms frequently overlook the ongoing legal requirements to keep their company registration.
Annual investor, manager, and associate meetings must be held, and the minutes must be recorded and officers elected following state regulations.
Failure to do so may risk the company’s legal standing and result in the “breaking of the company law” in the case of a lawsuit or other legal action, subjecting corporate executives to personal accountability or other legal issues.
Intellectual Property Rights
Many of a company’s intangible assets should be legally safeguarded. Copyright protection is available for trademarks, logos, brand names, and distinctive products and services. Trademark registration may be available for computer software, vessel hull designs, semiconductor chip designs, and various other innovations.
Patents can safeguard methods such as a technique for crude oil refining, or novel mixture of components such as chemical compounds or combinations, which are typically overlooked.
Registrations for trademarks, copyright, and patents can assist a company in safeguarding the assets that provide it a competitive edge in the industry.
Creating employment contracts
Many businesses, particularly those in the technology sector, see their employees’ expertise as one of their most valuable assets. Despite this, they fail to secure their assets by requiring their staff to sign non-disclosure and non-compete agreements.
Some employees will inevitably quit the firm, and it’s critical to protect your organization from taking your company secrets with them to the competition.
Preparing exit strategies
Founders are often so focused on beginning a new company that they forget to think about what would happen when one of the partners departs.
When a partner or key stakeholder decides to leave abruptly, it may affect its capacity to continue operating.
Closely held firms must have buy-sell or buy-back agreements in place to guarantee that partners or key investors can sell their shares without causing the company undue financial hardship.
Creating employee policy manuals
If you have employees, you’ll need to set up workplace guidelines and restrictions that they must observe. An expert business attorney can help you design an employee handbook that clearly describes expectations, regulations, and procedures for everyone in your company.
Lawyers can make collections easy
If any of your customers or clients are not paying on time or at all, an attorney can help you choose the best course of action for collecting the outstanding accounts receivable. Perhaps all you need is a notice written on legal paper.
Taking an outstanding debt to a civilian lawsuit isn’t always worth the expense. In any case, an attorney can advise you on the best course of action.
There are several reasons why hiring an experienced business attorney is advantageous when beginning a new firm.
Over to you
As you’ve just discovered, business operations need a variety of legal techniques and expertise. Although businesses must wear multiple hats to be successful, outsourcing the more complicated issues to the experts is preferable.