A large number of small businesses that are opened each year don’t last for five years or longer. So, how can you ensure that your small business makes the cut?
When you decide to start a small business, the chances are that you have the capital to start the new business and a great idea too. While you may choose to start the business on your own, you can also partner with family members or investors who will not participate in the company’s daily running.
Whatever option you decide to go with, you should know that the laws that apply to starting a small business differ from state to state and the situation’s specifics. Even if you decide to go into business on your own, you should remember that you will still have personal liability for all your company’s losses and debts.
Since starting a new business involves many legal matters, it goes without saying that you will want a lawyer such as Adams Smith Law by your side. Here are the reasons why you will need a lawyer when starting a small business.
To Help Draft Business Contracts
When starting a small business, there are many agreements that you will have to go into. From signing contracts with employees to making agreements with your vendors and suppliers, there is a wide array of scenarios where you will need your lawyer before signing contracts.
Although these agreements may seem quite simple to adopt, there are legal commitments that come with any business contract. A business lawyer will come in handy to not only go through the terms of the agreements but ensure that all the relevant items are captured in a contract as well.
File the Required Paperwork
When starting a small business, communication with your partners, customers, and suppliers is key to success. However, creating the proper communication channels can be a daunting task. This is where a lawyer comes in.
A lawyer will find the easiest legally approved way of communicating with all the parties involved while keeping your business’s interest at heart. This way, all parties involved in your business will know all their obligations and any possible consequences of failing to adhere to the agreed terms.
Advice on Tax
There are many things that can cause a business to go under. Apart from making massive losses, one of the leading legal issues is tax evasion. If you are a staunch entrepreneur, then you’ve probably heard of big companies that have failed due to tax issues.
A business or tax lawyer will guide you on what to do and explain why you should always pay your taxes on time. As if that’s not enough, a lawyer will also help you set up a tax structure as well as applying for the required licenses.
When starting a small business, the chances are that you will need two or even multiple bank accounts. Also, depending on your finance’s nature, you may need to apply for a credit card or various lines of credit.
A business attorney will advise you accordingly on the best banks that you should open your account with. This is after thoroughly studying the legal requirements of opening accounts and the limitations that each bank has in terms of deposits and withdrawals.
A lawyer will also advise you on the importance of keeping your business and personal finances separate. Remember that a financial mixup may be viewed as embezzlement during an audit or when filing for tax, and you may have to be liable for any losses made.
Starting a small business can be exciting. However, you can’t deny that it comes with a lot of challenges. While you might have to fight some on your own, you can rest assured that a lawyer will handle all your legal matters.
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