Business owners should always be prepared for legal problems that could come their way. It is wise to have a lawyer on the payroll or at least on retainer in the event that legal counsel is needed depending on the size of your business. Here are five common reasons why your small business may need a lawyer.
1. Lawsuits Are Common In The Business World
If you are sued, you are going to want a good lawyer to defend you in court. Successfully fending off a legal challenge can save your business much more than it will spend on legal costs. In some cases, your lawyer may be able to settle or get a case dismissed before it even gets to court. Small disagreements can be handled without a lawyer, but get a lawyer if someone threatens to sue your company or brings a lawsuit against your company.
2. Establishing Your Business Structure
Although you can form a LLC or corporation on your own, having a lawyer draw up the incorporation documents can be a good idea if ownership is shared by more than one person. It is also a good idea if the company will sell shares of stock. Additionally, there are subtle differences between a corporation, a LLC, and other types of businesses. Having access to an online legal dictionary or help from a lawyer is a must when starting any business.
3. What Happens If A Client Doesn’t Pay?
There will be times when a client refuses to pay for services rendered or goods received. When this happens, you will need to seek legal counsel to make sure that you are following the law as you try to get payment from your client. If you don’t follow proper collection procedure, you could be sued by your client.
4. Copyrights And Trademarks Need To Be Finalized
Trademarking and copyrighting intellectual property will ensure that your company has exclusive rights to what it has created. Furthermore, getting a patent for your new idea isn’t easy. You won’t be able to lay exclusive claim to your content unless you have a lawyer guiding you through the process.
5. Someone Blatantly Slanders Your Company
It is common these days for competitors to try to sabotage their competition through tactics referred to as negative SEO. This includes writing false reviews or anything else that causes customers to sour on your brand. Having legal counsel could help you determine if there is anything that can be done to prevent this from happening to your company.
Anyone who owns a business should be aware of the legal pitfalls that could cause your business to cease operations. Having good legal counsel can be helpful in many ways as your company establishes its brand and increases its market share.