Among the endless worries for entrepreneurs who are running a business in Los Angeles is the question of whether they need a business attorney. Keeping an attorney available at all times can be expensive, but when you need trusted legal help, you do not want to find yourself stuck in a situation where you don’t have access to a lawyer. The following paragraphs will discuss when is the right time to hire a business attorney in Los Angeles.The consensus, especially in LA, is that lawyers charge pricey rates and some business owners may not have access to extra capital. Consequently, business owners only hire an experienced business attorney when they are confronted with a serious legal problem. (For example, maybe a customer is trying to sue you.) Nevertheless, legal help is a cost of conducting business that usually saves you money in the long run, and helps your business to continue thriving. While you don’t need a lawyer for every aspect of running your business, there are some situations in which you and your business could benefit from having the help of a skilled attorney on your side.
What Does a Business Attorney Do?
A business lawyer possesses a keen understanding of the law and has the training necessary to handle the bulk of your business necessities. When you are just starting your own company, with investors or partners, a business lawyer will aid you in protecting your business and your investment, stop misinterpretations between you and your business partners, and, most notably, help you to shield yourself from personal liability for legal obligations and business debts.
Do you Need a Business Lawyer?
You have gathered the funds you need to start your dream business and are equipped with a ready business plan to be implemented, but, you still possess numerous primary concerns that need to be addressed. The judgments you render in the early stages will have an effect on your everyday operations in the future. From naming your business and ensuring that the name is free for you to use, to successfully choosing the type of business entity that suits you, you will require the help of a business lawyer.
The business name you select may not be available due to being in use by another business, or, the title you choose for a product you will be selling may conflict with a common word used by the public. The provisional choices you make in the initial phases of executing your plan for your business can potentially save you money, and time, and prevent complications moving forward. A business lawyer will have the training, knowledge, and skills to properly advise you. An attorney fully comprehends the law, always has your utmost advantage in mind, knows how to properly submit paperwork to specific authorities, can decipher the strengths and weaknesses of a legal situation, help you to better understand your legal rights and options, and can help prevent errors from occurring.
Some valid reasons that justify why working with a business lawyer is a smart decision for your investment include:
Weighing your options: A lawyer can help you to make a well-informed decision that is beneficial for the overall success of your business. Your options depend on your business goals as well as what business category you will fall under. Will liability protection be necessary? Will you have partners in your business? Will you raise capital in the future, or hire employees? Will anything impact the type of entity you choose, such as your income level or immigration status? A business lawyer will explain to you whether starting a business as a Sole Proprietor, a Limited Liability Company, or forming a corporation, partnership, or some other entity, is the right option for you.
Protecting your Assets: One of the main reasons for incorporating a business is to safeguard your assets from individual liability. Nevertheless, filing articles of organization or articles of incorporation alone does not protect you from personal liability. To be fully protected, an entity has to comply with the statutory formalities and be created according to the law. Operating the business separately from your finances is paramount. These are fundamental factors that will provide you with primary protection.
Avoiding Oversights in Contract Drafting and Negotiations: A business lawyer will create the typical contracts you will need to deal with clients, customers, suppliers, and employees, and will help you to comprehend contracts you may need to sign for other parties. When you go to enter a significant agreement, a lawyer can help you go over it and ensure it provides you with sufficient protection with fair and clear terms and provides for protection against losses in case of a breach.
Permits and Licenses: You may have to apply for a permit or license, and you may need to provide public notification of your intention to start a business or acquire assets from a business that already exists. A business lawyer will help you to navigate these processes and to submit all necessary paperwork to the appropriate government offices and boards.
Tax Liability: The type of entity selected for your business will impact your personal and business taxes. Initial tax inquiries should be satisfied before you begin. If you plan on hiring employees, you will have to establish payroll and gather payroll taxes. A business lawyer will help you answer any/all provisional tax questions and work alongside your Certified Public Accountant.
Intellectual Property: If you are building a business founded on a design or product that you created, your inventions, logos, and any original work have value. Preserving your intellectual property is vital in the competitive market that exists today. You may need to file registrations of your trademark, copyright, or patent. Whether you enter into a third-party agreement or you have an innovative product that needs to be protected, a business attorney can help you to preserve and protect your legal rights to your intellectual property.
Employee Laws and Policies: Helping your team to grow may be an important focus of your business. An attorney can help you to abide by and understand the applicable codes, regulations, and laws around hiring independent contractors or employees. The right legal advice can help prevent you from discrimination claims, misclassifications of employees, or breaking state and federal laws.
Peace of Mind: Owning a business is stressful and exciting all at once. Several working components exist in conjunction with starting a business, which may feel like a burden at times but is a vital part of the process. Hiring a business lawyer can help provide you with the peace of mind needed to successfully run your business.
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