Regardless of whether your business makes or has the potential to make millions or just starting out, a business attorney can help ensure you have the right game plan in place to meet your short- and long-term goals. In this post, you’ll learn about four ways a business attorney can help you start and manage your business.
Choosing the Right Formation for Your Business
A business attorney can help you choose the right formation for your business. Limited liability corporations, limited liability partnerships, s-corporations, general partnerships…there are a lot of formation options. There’s also a lot of information available on the internet about each one. While access to that general information is great, it can be hard to determine which formation will most benefit your business and your future.
A business attorney can do more than explain each business formation type to you. They can help you determine the formation that will give you the most favorable tax treatment, reduce your personal liability, and help you understand the legal obligations your business must fulfill to stay in good standing in the state where it was formed and, if necessary, in other states where you do business.
Drafting and Review of Contracts and Other Business Documents
Contracts exist in every industry. Although oral contracts are legal in most places, a dispute of any sort is difficult to resolve in or out of court. The situation becomes the poster child of the classic “he said / she said” scenario. A written contract helps guide the working relationship between the parties and also acts as a reference document for what the involved parties should expect.
However, your business may be offered a contract where it becomes obligated to fulfill certain obligations within a certain period of time. While that is particularly exciting when you’re just starting out in business, it may also present a very real danger. The language within the contract may not represent what is in the best interest of your company. If you take the word of the entity offering the contract, you could end up in a very sticky situation because it is not their job to make sure that what you’re signing is beneficial to your business. A business attorney can review contracts offered to you for the sole purpose of advising whether the contract is fair or whether it is taking advantage of you. A business attorney can also draft contracts that you can use as a template. The contracts are written specifically with your business, your needs, and your goals in mind.
In business, contracts are just one of many documents that exist. Depending on the nature of your business, you may also need licensing agreements, non-disclosure agreements, confidentiality agreements, employment contracts, and other documents. A business attorney can help you determine which documents you need and draft them in accordance with the laws affecting your industry as well as the governing laws in the state where you do business or the state whose laws you want to use to resolve disputes.
Compliance & Management Planning
Many industries, including the healthcare industry, have certain things they must do. This is known as compliance. Compliance issues may arise in several areas, including privacy matters related to client or patient information, data security, how physical records must be handled, and certain actions that must take place during the course of business. A business attorney can help you identify compliance matters and create a plan your business implements and follows.
Management planning is another important concept in business. How your business is structured and managed will play a big part in the success of your business. Depending on how your business is legally structured, the actions of managers or partners may have a serious impact on the business in terms of liability. Working with a business attorney, you can be better prepared to bring in the right management and clearly define their roles in a way that provides the best possible benefits for your business.
Partnerships, Shareholders, & Investors
Depending on the type of partnership chosen, partners may or may not have active involvement in the management and daily activities of the business, voting power, or the ability to make decisions on behalf of the entire company. Profit and loss sharing may also depend on the type of partnership agreement you have as well as what everyone agrees to in terms of how profits and loss will be split among the partners. It’s important that partnership agreements are written to accurately reflect the relationships between the partners because not only does the agreement create a legally binding contract, it also acts as a guide that the partners can refer to when there are questions.
Some corporations have shareholders. Shareholder agreements must be clearly written. It explains how the business is governed, how the business is operated, the rights of the shareholders, and the obligations of the shareholders. It also explains how disputes between the parties will be handled. It’s important that shareholder agreements be written specifically with the business and the shareholders in mind.
Investors may or may not have a daily role in the operation of the business. Some investors may expect a certain return for their investment. They may expect to be repaid by a certain date. They may require that they hold a certain percentage of the company as well. A business attorney can help you understand the different types of investors, which sorts of investors may best benefit your business, and draft an agreement that documents and governs the relationship.
Larsen Law Is Here to Help
With more than 30 years of business law experience, Larsen Law prides itself in providing legal guidance and legal services to businesses. Based in Denver, Colorado, Larsen Law also has the ability to help businesses across the United States. To learn more about what we can do to help your business, schedule a consultation. We’re here to help!