Structuring the Business
One of the first tasks for every owner of a small business is deciding how the business will be structured. These options include nonprofit, corporations, LLC and sole proprietorship. This decision affects the businesses exposure to ongoing expenses, setup fees, tax obligations, personal liabilities, and the way funding can be acquired legally. Consulting with Lawyers of Distinction enables the business owner to receive the guidance necessary to make the correct decision for the business. The attorney will additionally help with the creation of the business, and the filing of all required documents.
Employee Issues
Issues concerning the employees of a small business may mean a lawyer becomes necessary. The decision as to whether to retain independent contractors or hire employees encompasses very specific laws. A good business lawyer is familiar with these laws and can help ensure there are no problems with the IRS. When a small business retains an independent contractor, an agreement outlining the specifics of the arrangement must be drafted. A business attorney has the experience to ensure the agreement can be drafted so it is favorable to the small business.
An attorney will also ensure if a boilerplate agreement or an existing agreement are used, it is in the business’s best interests. A lawyer should be consulted prior to firing or hiring any employees to make certain the business is not being placed at risk for a discrimination lawsuit. A good example is the questions that should never be asked during an interview. A business attorney is familiar with these questions. A lawyer is additionally a critical asset if a small business is faced with the lawsuit of an employee because the interests of the small business must be protected.
Negotiating and Drafting Contracts
Most small businesses eventually enter into a contract. A business lawyer can help make certain the contract will not place the business in any jeopardy. Lawyers of Distinction are experts at finding and clauses that may cause issues. They know when additional language is required. A good example is a contract signed without a dispute clause. This may result in a lawsuit instead of the issue being resolved with mediation. If a contract was already executed and has been breached by the other party, a lawyer will understand the options. They will additionally prevent the business owner from taking any actions that are illegal. This action may be withholding money after the breach, and this may not be allowed due to the contract.
Complaints Filed by the Government
A business attorney is necessary if a complaint has been filed against the small business by the federal, state or local government. When an entity of the government has filed suit or is investigating a small business, a good business attorney is critical. There are a lot of different reasons for this type of suit or investigation. The claim could be from the state labor department regarding a claim made against the business by an employee, or the IRS may have found an issue with the tax return submitted by the business. The federal government recently sued a business located in Wisconsin for firing workers not possessing adequate skills in English. A business attorney can help with all of these issues and more.
The Environmental Issues
A business attorney is necessary for any environmental issues related to the business. The cause of these issues can be developing raw materials, emissions, waste disposal or manufacturing. Even if there is no direct involvement from the small business, they may still be affected. If a business purchases a piece of land, and later discovers there are hazardous materials located beneath the surface, the seller must be sued. A business attorney can ensure the seller has to pay for the costs of cleanup.
Selling and Purchasing Businesses
A business lawyer should be contacted prior to purchasing any business to help with the complexities of the transaction. A good attorney has an excellent understanding of writing acquisitions, the value of a business, licenses, transfer permits, due diligence and purchase agreements. When a business is being sold, the lawyer will ensure the seller receives the most value for the business, help vet the buyers, ensure stock transfers are handled correctly and assist with any negotiations.
In certain situations, a good business attorney is the best friend a business owner can have. It is a good idea to find a business attorney, so when a situation arises, the business owner already knows who to call.