One of the countless worries for business owners who are just starting or already have a functioning business is the question of when would they need a lawyer. The idea is that lawyers are expensive, and many entrepreneurs think that they would only need one when confronted with serious legal problems. However, this misconception can be risky and can also lead to financial loss in the long run. Continue reading this article to know about when should you hire a business lawyer.
When Would You Need One?
There are certain matters that can be done without the help of an attorney. However, when you’re confronted with an exhaustive list of legal tasks, even the smartest and most diligent business owners can find it too time-consuming or too complicated.
There can be one or two things you can do on your own, but if you’re up to your neck with everything going on with your business, then the wisest move would be to hire a business lawyer. If you’re wondering where to find one in Sydney, Australia, you can start by checking out the website of Prime Lawyers for more information.
Here are examples of legal tasks to comply with and issues you could be facing:
- Constructing a legal partnership agreement, shareholder’s agreement, or LLC (Limited Liability Company) operating agreement
- Making contracts for use with clients or customers
- Making buy-sell agreements with partners
- Handling ATO (Australian Tax Office) audits
- Negotiations for the acquisition of assets or companies
- Involvement of your business in environmental issues that are punishable by law
- State and local government entities investigating or filing complaints against your business
- Current or former employees are threatening to sue on the grounds of discrimination
- Contributing appreciated property to the LLC agreement or your partner
- Business permits and license applications
- Application for TFN (Tax File Number)
- Documentation of LLC meetings
- Hiring and preparing written agreements for independent consultants and contractors
As an entrepreneur, you’re not expected to understand and know every facet of business law. Nonetheless, that doesn’t mean that you’re entitled to a free pass when you intentionally or unintentionally break the law. It’s essential to note that ignorance is not considered a defense against any legal action.
A simple error in any of these legal tasks or issues can cost your company a serious amount of money and reputation. In any of the situations above, the costs of hiring a reliable attorney can be more justifiable than the potential financial setbacks it might cause your business.
Hire One before It’s Too Late
While it’s a good idea to have an attorney beside you when serious issues arise, preventing them should always be your first priority. Although it’s not necessary to hire a business lawyer to avoid such occurrences, it also wouldn’t hurt to consult one. By the time your company is sued, any preventable damage has already been done, and you will end up paying the damages, court fees, and your attorney’s fees.
For example, when a former employee files a lawsuit claiming racial discrimination based on his or her untimely dismissal within your company, all you can do is to bring in a lawyer to defend the said lawsuit. However, when you’ve done your research on racial discrimination laws or had done a lawyer consultation beforehand, you would have avoided segregating employees by race before their dismissal.
Lawyers can see into the future because they know and can recognize the warning signs of legal issues before anyone else does. If your lawyer notices a legal problem waiting to happen, they can give you advance notice to correct it to avoid legal hassles.
You can also consider a consultation arrangement with a business lawyer to avoid costly lawsuits in exchange for minimal fees. However, this arrangement would require you to do most of the research and legwork while your attorney only provides guidance and legal review.
For example, you can utilize online resources and self-help to produce a contract with a retailer and request your lawyer to offer suggestions and review the document. This way, you can prevent potential issues later, while paying minimal fees.
Hiring a business lawyer can give you much-needed advice and guidance to ensure the long-term success of your company. They will use their expertise and preventative practices to create and maintain a strong legal foundation, and to avoid potentially costly financial setbacks. When you’re hiring a lawyer, always remember to do your research and make sure to hire a reliable and competent attorney.