3 reasons a startup should use a business lawyer 

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It is common for more than one legal question to pop up when getting a startup off the ground. A good business lawyer can help with any current legal issues a startup may have and help prepare the company for future legal issues that may arise. There are many reasons to hire a business lawyer if you are running a startup. Firstly, a business lawyer can help you select the right entity when you are legally forming and registering the company.

Also, a lawyer can help you settle any disputes your startup may have with other businesses. Finally, it is a good idea for a startup to establish a relationship with a business lawyer so that they have someone they can turn to if and when legal issues arise in the future. Read on to learn more about why a startup should use a business lawyer. 

Reason #1: Help Selecting & Registering the Right Entity 

One of the first and most important reasons for a startup to use a business lawyer is for help selecting and registering the right entity. While it is not absolutely necessary to get an attorney’s assistance when it comes time to select and register a formal business entity, engaging an attorney is a good idea. An experienced business attorney can help your startup select the type of entity that will reduce your business’s taxes and liability concerns.

Choosing the right entity is also important to ensure that your business can scale properly in the future. Registering a business entity can be a time-consuming process, but a business lawyer can take care of this task for you. They will ensure all of the paperwork is properly completed and filed so that your business can be registered as quickly as possible.

Reason #2: Assistance with Business Disputes 

Another vital reason for startups to hire a lawyer is for assistance with business disputes. Many startups find themselves in positions where a contract with another company goes awry. This could occur when the startup contracts another company for a service, or when another company hires the startup to perform a service. Of course, there are many other types of disputes that could arise between the startup and another business. In these situations, it is important to have an attorney who is familiar with the business. This familiarity will help them be the most effective advocate for the startup in any legal dispute that arises. 

Reason #3 Ongoing Assistance With Any Issues 

It is also important to hire a business lawyer so that the startup has someone they can turn to when they have a question or need clarification about a legal issue. If they already have an established relationship with a business lawyer, this can be as simple as picking up the phone and asking their lawyer a quick question. If they did not already have an established relationship with a business lawyer, it would take the startup much longer to get the legal advice they need. Some startups may not end up seeking the legal advice they need, which could result in serious problems down the road. 

When to Hire a Business Lawyer 

Many startups are aware that they need to hire a business lawyer at some point, but they don’t know exactly when they should hire a lawyer. It is best to hire a business lawyer before the startup is even legally formed. As previously explained, it is important to get a lawyer’s assistance with forming the startup in the first place. You don’t necessarily need to hire a lawyer as soon as you have an idea for a startup. However, you should hire a lawyer as soon as your startup is actually ready to begin business operations. This will ensure that the company is properly structured and that it is insulated in liability in all of its business dealings.

Finding the Right Attorney 

There are several things that a startup should keep in mind when they look to hire a business attorney. First of all, it is important to find a lawyer that has plenty of experience in the industry. It may be tempting to go with a cheaper attorney fresh out of school, but business law is very complex and it is important that business lawyers have experience in many different situations. If possible, you should also try and find an attorney that has experience working with startups specifically. You should ask the attorney if they have experience working with similar startups.

 

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