Reasons Why Small Business Owners Should Consider Hiring a Lawyer

“Do I need a lawyer for my small business?”

Our firm often hears this question from fledging small business owners who are not really sure whether they need a business lawyer. Like them, maybe you are concerned about the cost. You think you can DIY legal issues to save cash and spend that money on growing your business instead.

Not hiring a business law attorney, though, is a mistake that could come back to haunt you if you run into legal trouble. Below, learn why it is smart to have a small business lawyer in Arizona involved in your business plans right from the start.

Why Small Businesses Should Hire a Qualified Business Attorney

Many entrepreneurs do not want to bother having an attorney involved in their business, so they try to stick with self-help resources instead. However, attorneys offer invaluable legal guidance and can protect companies like yours from business-ruining pitfalls. Here is how.

Starting Your Business

In the beginning, many small businesses are caught up in the excitement of opening their doors and do not think about the legal side of things. You will have to consider several challenges for small business owners, such as:

• Is the business name you want to use currently taken? If so, what will happen if you try to use the same name?
• What is your business structure going to be? Are you starting a sole proprietorship, a partnership, a limited liability company, or a corporation? If you have a partnership, what will the tax implications be for your business entity?
• You have worked hard on bringing your product to life. How will you protect your intellectual property, and what will you do if other business owners or your partners try to steal your ideas?
• What is an operating agreement, and does your new business need one?
• What if you want to hire a family member to work at your business?

Business lawyers are well-versed in answering questions like these.

Ensuring Ironclad Employment Agreements

Unless you are flying solo, you are going to need to hire employees at some point, and to do that, you will have to draw up contracts. The wording of your contract matters, too. Word things the wrong way, and you could wind up facing an expensive lawsuit.

Contracts for employees will need to address matters such as:

• The job description
• The employee’s salary and benefits
• Hiring date
• Duration of employment
• Confidentiality agreements (to safeguard proprietary formulas, for example)
• Non-compete clauses
• Your policies, regulations, and rules
• Dispute resolution methods
• Termination

Because writing up a contract can be very complicated, consulting a business law firm is the way to go.

Navigating Real Estate Transactions

As a business owner, you will have to decide whether you want to lease office space or buy your own property. Both come with perks and drawbacks.

If you opt to lease, you will have to navigate terms with the property owner, such as how long the lease is for and how much money you will spend on rent each month. Leasing might be a good option if you do not want to be permanently tied down to one location. However, with a lease you are at the mercy of the property owner, who might decide to terminate your lease if your new business does something they do not like.

If you choose to buy, that opens up a whole new set of issues. Buying and selling commercial real estate is far more complicated than purchasing a home. Your partnership or corporation will need an attorney to walk you through it.

Representation for Complex Legal Situations

Your business is humming along when suddenly, you are hit with a notice that you are being sued. Maybe an employee sued you for discrimination, or perhaps your customers are filing a class-action lawsuit due to faulty products or services. Whatever the case, you need legal advice, and fast.

Business attorneys can protect your assets and resources in a lawsuit. Your attorney will gather evidence to protect your company, negotiate with the plaintiff, and represent you in court if your case makes it to trial.

You may wonder, “Do I need a lawyer for my small business if I am being sued for violating state or federal laws?” Absolutely! You definitely need a business lawyer to look out for your interests in any legal matter. Not having one could mean expensive fines and/or damages. Do not risk it; call a business law professional ASAP.

IRS Audit Assistance

A letter shows up in the mail one day, and to your horror, it is from the IRS. It detected something fishy with your taxes, and now it wants to audit you.

Minor audits are simple enough that you can usually resolve them by chatting with an agent on the phone or mailing the requested documents to the IRS. But if it has reached the point where an agent wants to visit your business in person, call a lawyer well before they arrive.

Your lawyer will help you gather and organize your financial statements, sit with you during the IRS meeting, and represent you in court if necessary.

Matters That Do Not Usually Require a Small Business Lawyer

If your company is looking to save cash on attorney services, you will be glad to know that you do not necessarily need a lawyer for everything. Tasks you can handle without a business lawyer include:

• Applying for your employer identification number (EIN)
• Applying for permits and licenses that your city and/or state requires
• Choosing a domain name for your business website
• Interviewing prospective workers
• Documenting meetings with clients
• Submitting forms to the IRS

That said, if you want to be sure you are doing everything right, your business entity may want to call a lawyer for advice.

Starting a Business? Consult an Experienced Attorney in Scottsdale

Still wondering, “Do I need a lawyer for my small business?” or “Do you need a lawyer to sell your business?” If you want to protect yourself from legal woes and major losses, the answer is certainly yes.

Anthony Law Group is an experienced, highly rated law firm serving Scottsdale, AZ. Attorney Stephen J. Anthony can assist with everything from protecting trade secrets to resolving business disputes.

For a consultation with a business attorney, call (602) 362-2396.