How Business Law Experts Could Help a New Entrepreneur
Owning a business is one of the best ways to accumulate wealth. In addition to writing a business plan, there are specific things an entrepreneur must do before they start selling products or services. One of the most important tasks is to decide on a business structure. Whether the company should be organized as a sole proprietorship, a limited liability company, or a corporation depends on several different factors, and an attorney who focuses on Business Law could help a new business owner figure out which is best for their venture.
Businesses that will have two or more partners present special challenges, and any agreements formed between the partners should be reviewed by an attorney before the first sale is completed. Although partners may be in sync when the business starts, a disagreement that isn’t accounted for in the business formation documents could have serious consequences for a new business. Creating a fair and reasonable partnership agreement is essential to the satisfaction of all partners as well as the business’s customers.
Partners who create a Buy-Sell agreement early in their relationship have a tool in place from the beginning to provide guidance if one of the owners dies or no longer wants to be part of the business. This can also address succession planning for parents who want to pass their family business down to their adult children. Consulting with a lawyer who has years of experience in this type of planning could help an entrepreneur plan for the future and give them peace of mind knowing their business can live on after they are gone.
Having an attorney from the beginning could help with a lot more than business organization setup. Attorneys may give advice about legal issues that could affect the business later. Matters such as hiring and terminating employees, leasing or purchasing real estate, and selling the company may be a lot easier when an attorney has been involved since the inception of the company.
Business owners typically place a value on their business that has more to do with their emotional attachment to the company than the appraised value. An attorney who focuses on Business Law may help an entrepreneur accurate evaluate their company so they can prepare to sell it to a new owner. An accurate valuation is essential to a quick and fair sale. Owners who work with an attorney to do this are usually more pleased with the outcome.