Starting a new business may be an exciting endeavor, but success will depend on long hours, dedication, and a large dose of hard work. Business success is not achieved overnight, and unfortunately not every business will thrive. According to the Small Business Bureau (SBA), from 1994 to 2019 just under 68% of new businesses survived two years, just under 49% survived five years, and the ten-year survival rate was around 34%. Given the complicated nature of business and the challenges involved in weathering market shifts, it is important to start off on the right foot in order to prepare your business for a prosperous future. There are many reasons why working with a business startup attorney in the preliminary stages and at the outset of establishing a new business can be advantageous. If you are an entrepreneur who is prepared to open your own company, consider scheduling a consultation with an Arizona business attorney at Harrison Law, PLLC by calling (480) 320-2310 today.
What Is a Business Lawyer?
A business lawyer is one who specializes in assisting businesses with legal matters. From a solopreneur endeavor to a large corporation with locations in multiple states, every business has legal needs. Whether it is filing the appropriate paperwork to open the business, contracts with employees and vendors, or the registration and protection of intellectual property, there are many legal considerations new businesses need to address to ensure they are in compliance with local, state, and federal laws. Business attorneys may be able to help these new businesses with making sure their obligations are effectively managed and completed in a timely manner.
Top Reasons Why Working With a Business Attorney Can Be Beneficial for Startups
The decision to work with a business startup attorney can be critical for many reasons. Business attorneys may be able to provide essential guidance on the laws to keep a business compliant. An attorney may also be able to assist with financial decision-making and offer advice about how to mitigate risk. The following illustrates the top ways that start-up businesses can benefit by working with an attorney.
Contracts
Doing business means developing relationships with other entities and parties. These relationships are established and maintained through contracts, which means that contracts are critical when it comes to the flow of operations. Contracts are necessary in many situations including employer-employee, vendors, customers, and more. All too often serious legal problems arise when a business decides to draft a contract that is unclear or too general.
Contracts must be airtight, and an experienced contract lawyer will know how to draft contract clauses that protect a business’s interests. An attorney may be able to write a contract to accurately reflect the needs of a business that also protects it from legal troubles down the road. An attorney may also review contracts before a business owner signs on so that they are safeguarded from potential problems here as well.
Determining Business Structure
The Internal Revenue Service (IRS) indicates the five most common types of business structures are:
- Limited Liability Company (LLC)
- Sole Proprietorship
- Partnership
- Corporation
- S-Corporation
Figuring out which business structure suits a particular business can be complicated. There are several factors to think about when determining what the right business structure is to best meet the business’s goals. Control, capital investment, flexibility, liability, and taxes are just some of the considerations a business owner will likely wish to bear in mind. Business attorneys frequently offer services to guide their clients in the right direction from the start.
Lawsuit Avoidance
Legal disputes are some of the biggest complications that a business can face. Litigation takes valuable time and resources from a business’s operations. An attorney may be able to identify potential legal issues in advance so that business owners take appropriate actions to avoid some common small business lawsuits before they start. For instance, an attorney may assist a business in taking legal steps to protect its intellectual property. Simply avoiding a lawsuit can save a new business time and money.
Risk Mitigation
Business lawyers often safeguard their clients’ interests by keeping an eye on potential problems that could affect a business. This watchfulness can assist an attorney in devising a strategy that can be used to prevent potential problems, such as contract disputes or unintended liabilities, from arising. Since risk is always on the table for any business, an attorney may also consult with clients to help them decide how much risk they are willing to accept and mitigate risk where appropriate.
Long Term Savings
Conducting business operations and managing complicated tasks alone can potentially lead to oversights and missteps that may not have had to happen if a business had legal counsel. As a result of these avoidable mistakes, a business may suffer considerable financial repercussions. Hiring an attorney at the outset of a startup operation may help entrepreneurs to anticipate, and thereby reduce, liability. Startup businesses in Arizona may be able to take advantage of working with a business attorney at Harrison Law, PLLC who will be not only an advisor and legal counsel, but a partner providing support throughout the entire business lifecycle.
Legal Defense
While a business start-up attorney’s assistance may be able to help a new business prevent lawsuits in many cases, it is not always possible to completely safeguard a company from every legal challenge. Should a lawsuit be filed against a business, a start-up attorney with whom a business already has a relationship may provide personalized advice based on intimate knowledge of the business.
Skilled Negotiations
When working with other parties and entities, there is always the opportunity to make a good deal. An attorney with skilled negotiation capabilities may be able to use their experience to help a business get its desired outcome. Whether it is a more attractive price on a product, or garnering a satisfactory result when there is a disagreement, an attorney’s support and insights may often give a business an advantage.
What To Look for in a Business Lawyer
Businesses at any stage of operations may benefit from legal counsel. However, since new businesses usually do not have the financial resources to fund an in-house legal team, finding and working with a business startup attorney to provide fractional services in general counsel early on may be a more feasible option. A startup lawyer can provide a new business with essential legal counsel and advice so the venture can be best positioned for long-term success.
Hiring a business lawyer may help an entrepreneur establish their business and safeguard it against problems that can be costly and disastrous to its prosperity. When searching for a business attorney to assist with their enterprise, startup business owners should choose one who has experience, a favorable history of helping other startups, and a commitment to dedicating time and attention to you and your enterprise.
Speak With a Business Attorney Today
The United States Census Bureau reported that in 2020 there were over 5.7 million firms in the United States in all sectors. If you would like to join that statistic with your own company, you may consider connecting with a business startup attorney for assistance. Entrepreneurs in Arizona and beyond can reach out to Harrison Law, PLLC by calling (480) 320-2310 today.
© 2024 Matthew W. Harrison and Harrison Law, PLLC All Rights Reserved
This website and article have been prepared by Harrison Law, PLLC for informational purposes only and does not, and is not intended to, constitute legal or financial advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice from an attorney licensed in your jurisdiction.
