Legal Guidance for Growing Businesses: Why Lawyers Are Essential
Growing a business takes a great deal of time and effort. From hiring trustworthy employees to landing new clients, there are many considerations to consider. Often, these concerns include legal and regulatory matters. This is why it’s essential to have the proper support in place. General counsels need to be able to provide risk-aligned guidance across rapidly evolving terrains.
The growth stage is a time of exciting new prospects and possibilities but also exposes businesses to significant legal risks. With a lawyer, business owners can avoid missteps from employee matters to partnership agreements and corporate structure changes. They may also inadvertently breach trademark or copyright laws or fall into compliance violations with zoning regulations, employment laws, and other state or federal regulations.
A lawyer like those at Underhill Law can help avoid these problems with preemptive guidance at every step of the growth process. For example, an attorney can review and approve all contracts before the company signs them, ensure the correct legal entity is selected for the new growth stage, and protect intellectual property through registrations. Then, when disputes arise, the company will have provisions in place to minimize litigation costs. The savvy lawyer can act as a zealous advocate, supporting the business to take the risks necessary for growth.
Legal documentation is essential for a growing business, providing clarity and understanding between businesses by clearly outlining expectations, rights, and responsibilities. This can prevent misunderstandings and disputes. Moreover, legal documents can protect businesses from legal action by outlining policies and procedures. A lawyer prepares legal papers like contracts and agreements. A lawyer familiar with your sector of business may help you prevent costly errors and ensure the document aligns with your organization’s objectives.
Whether your client’s company is developing new products, introducing new employees, or modifying existing business practices, you must be able to identify potential legal risks and liabilities. This could involve reviewing contracts and agreements, ensuring that marketing materials comply with regulations, conducting risk assessments, and more. Having the proper liability protection is essential for growing businesses. For example, if outside consultants or contractors are handling sensitive information, your attorney can draw up nondisclosure agreements (NDAs) to shield your client from accusations of illegal disclosure. Additionally, your clients must prioritize general liability insurance. This coverage acts as a safety net to cover legal costs for third-party bodily injury, property damage, and advertising injury claims. With this essential coverage, your clients can confidently focus on their business’s growth and future success without fear of financial ruin. If your clients don’t have this coverage, they may be compelled to dip into their funds to pay legal fees.
Taxing businesses and individuals is one of the most significant sources of government revenue in nearly all countries. This can include direct taxes like income tax, value-added tax (VAT), corporate tax, and national insurance contributions. The ideal tax system is designed to raise enough revenues to pay for public goods and services without distorting economic activity. It should have low compliance costs, and the cost of evading taxes should be high enough to discourage evasion. High levels of evasion also make it harder to assess how well the tax system functions. Taxing high-growth startups can be incredibly complicated, as they often require substantial investments from third parties and may have unique intellectual property issues. Attorneys are familiar with these business arrangements and their ramifications. Keeping accurate records is also crucial to stay compliant and prevent financial penalties. This also helps to avoid legal disputes in the future.