When a person comes up with a great business idea, they’re naturally very excited. They envision the service or product, they identify their target market, and they create a message that will generate demand. However, some things are difficult for business owners to handle on their own. Clients can click here for more reasons to hire a business attorney for a startup company.
The Idea is Great, but the Entity Structure is Wrong
Sole proprietorships are simple, but they don’t offer much in the way of liability protection. Partnerships offer joint ownership, but that leaves the client responsible for partners’ losses. C corporations are simple to start, but can have potential tax consequences.
Avoiding Delays Associated With a Business’ Earliest Stages
A new business owner is likely excited to get started, but it can be difficult to get off the ground when encumbered by issues like naming officers, creating bylaws, and filing documents. A business attorney who practices Commercial Law in Santa Barbara CA can handle the legal minutiae while the entrepreneur does what they do best.
Protection from Early Mistakes
It’s not at all uncommon, during the initial phases of starting a business, to sign lease documents and other important papers in one’s own name. While it may seem like a simple mistake, it can have enormous tax consequences. A business lawyer can prevent owners from making errors like these.
Safeguarding Intellectual Property
Unless a business owner takes steps to protect materials that are key to the company’s success-;such as production methods, marketing language, and product concepts-;they may find that the information is accessible to competitors. By hiring a business attorney, entrepreneurs can protect this vital information.
Avoiding Governmental Challenges
Businesses must follow numerous regulations on financing, environmental issues, taxes and more. Compliance can present many difficulties, and they can even shut a business down before it starts. Simple mistakes can lead to fines and possible criminal charges, but a business attorney can help clients account for and eliminate compliance issues before they arise.
These are just some of the reasons why a startup owner should hire a business lawyer. Attorneys practicing Commercial Law in Santa Barbara CA are familiar with the pros and cons of each business structure, and an attorney can steer clients toward the corporate structure that provides the most advantages.
