Having a business lawyer to protect a business at all points of its life cycle should be a priority — from creation of the business idea through to a successful exit.  Having a business lawyer in your corner right from the start can make all the difference. 

Business lawyers can provide expert advice on legal structures, contracts, intellectual property, and risk management to ensure long-term success.  Here are some reasons why it’s important to have a business lawyer at the inception of a business.

Legal Structure and Compliance

Choosing the Right Structure When Planning A Business

A business lawyer can help you determine the best legal structure for your business (e.g., sole proprietorship, LLC, corporation). This involves considering factors like liability, tax implications, and plans for future growth. (We discuss this more here).  The right lawyer will know which suits a business best and where to go from that point forward.

Understanding and Complying with Laws

When planning a business, it can be assumed that there are many laws and general regulations to abide by.  However, knowing that these laws exist is different from understanding them.  

To help you be in compliance with requirements relevant to your specific industry, a lawyer can guide you through more than New York state and local laws and regulations. 

Risk Management

Once there is a basic understanding of the relevant laws, a business lawyer will identify other potential risks.  Minimizing liability is especially necessary when starting a business.  

It protects it from possible business-ending incidents and limits disruption to operations, reputational damages, and financial ruin.  With effective liability management, including risk assessment, insurance, and legal strategies, businesses can operate more responsibly.

Contracts, Negotiations, and Agreements

A New York business lawyer can draft and review essential contracts.  This is extremely valuable at the beginning of your business’s life!  There are numerous agreements like leases, employment, non-disclosure, and vendor agreements, which should all be drawn to protect the business’s interests.  If some contract terms need to be negotiated, a lawyer can help to negotiate the most favorable terms.  This will help maximize the business’s financial and marketplace foundation. 

Intellectual Property Protection

Entrepreneurs usually have intellectual property (IP) protection at the forefront of their minds.  However, securing business ideas and safeguarding products is important for every business!  

Business lawyers can guide professionals and entrepreneurs on trademarks, patents, and copyright protection as necessary.  Some intellectual property might not be protectable as a registered trademark, patent or copyright, but might be protectable as a trade secret.  If it appears a business’ IP rights have been diluted, tarnished or stolen, a lawyer can offer insight into what the next steps should be taken. The main goal is to enforce applicable rights to protect the business.

Representation

Should a legal dispute arise, a New York business lawyer can offer representation. This can help navigate and resolve the issue efficiently, minimizing potential financial losses.  While it is common for disputes to arise with customers, employees or other business partners may also be involved.  

To limit possible damages to the business’s reputation, seeking legal advice should be done before anything else.  It doesn’t matter if the business is still in its planning stages!  It’s better to be prepared for whatever may arise and have representation arranged as soon as possible.

Long-Term Success

It’s rare for a business to enter the market with short-term success being their goal.  A lawyer can provide proper guidance and legal strategies to encourage long-term success and growth.  By helping to lay strong groundwork, they will help the business owner ensure the business is on the right track for growth and sustainability.  When the time comes, business lawyers can also assist with selling a business or buying another one to expand market share.  

If you are at the point of deciding whether you need a business lawyer, then you probably at the right time to be calling one.  Business lawyers are invaluable not only while planning a business,  they are beneficial for providing legal expertise whenever necessary throughout the business’s life cycle.

This post is for informational purposes only.  If you have any questions or need legal advice, call Craig Delsack, a New York Business attorney today at 212-688-8944 for a no fee, no obligation initial telephone consultation, or complete the form on this page.