March 11, 2023/in Legal
Attorneys are not the first thing most small business owners have on their minds when building their company. Usually, they view attorneys as unnecessary and unaffordable. However, an experienced business attorney is a money-saving resource.
Partnering with an attorney early on will be inexpensive compared to the costs associated with the issues that could arise from not having established a firm legal foundation. In addition to partnering with counsel on the ground floor, it is prudent to have a board of professional advisors and mentors. There’s a real benefit to partnering with accountants, financial advisors, and serial entrepreneurs to create a board of advisors.
Getting started
For those of you starting a business, two of the first services a business attorney can assist with are confirmation that your business name is available and assistance with the selection of your business structure. A business attorney can also help navigate the necessary licensure from local to federal and obtain all applicable tax numbers, e.g., withholding, sales, FEIN, etc.
Contracts, etc.
Next, owners will need assistance with contracts. Once you and your attorney have confirmed the relevant contracts, counsel can negotiate and draft any partnership agreements or corporate documents. Further, throughout the life of a business, there may arise a need for employment agreements, independent contractor agreements, and employee handbooks – all proactive measures an attorney can take to set expectations and avoid potential lawsuits.
Tune-ups
The longer the business “life”, the greater the need for counsel and an experienced board of advisors. A business is like a car, it requires ongoing maintenance and periodic check-ins. Having a law firm is like having a “mechanic” for your business. Your mechanic (or attorney) can anticipate needs, mitigate potential risks, and suggest certain “tune-ups”. Tune-ups might include revisiting employment agreements, corporate documents, and amending existing operating or shareholder agreements. This preventative maintenance helps keep your business from “blowing a gasket.” In the event it does, (or an employee does) having an attorney familiar with your business is crucial. Your general counsel lawyer can quickly navigate threatened lawsuits and provide advice.
Consider experience
When looking for a law firm, you may want to consider one who has experience running a business, like the Law Offices of Shannon C. Smith. Since law school does not teach their students how to run a business, Smith Law’s unique understanding enables their attorneys to anticipate and understand the pain points of small business owners.
859-414-0543
605 Madison Ave. Covington, KY, 41011
Written by Alexis Brianna, Director of Client Experience and Marketing for Smith Law