5 Reason To Get A Legal Opinion When Forming Your New Company
by Mashum Mollah Investing 15 January 2019
As a business enthusiast, one of the key requirements is for you to procure appropriate legal services where a qualified attorney would provide you with relevant legal guidance relating to the establishment of your business. An attorney’s legal opinion in regard to your business is very important, especially as far as laying a good foundation is concerned. The attorney would ensure that your business is appropriately founded in accordance with the country’s existing legal framework. He would also work towards protecting your business from related liabilities; both foreseen and unforeseen. Here are five important reasons why you need to get a legal opinion when forming your own company.
Compliance with business registration, constitution, and licensure laws
Small businesses are normally governed by existing government legislation which stipulates, among other things, the way such businesses should be constituted and run. The registration process is entirely legal-dependent and requires you to read numerous legal documents that bind your business. These documents outline the confines of your business in terms of how it should be constituted and the government’s expectation on various issues including employment, taxation, and other liabilities. Your legal attorney would thus help you appropriately analyze each of these documents while understanding the relevant terminology and what it means for your business.
In addition, the attorney would also help you determine which of the legal stipulations and guidelines as provided by the government bind your business and to what extent. There are specific laws, for example, that define service-based businesses and goods-based businesses. Understanding each of these stipulations gives you an opportunity to know your rights and expectations from the government as well as what the government expects from you. Also, the business attorney comes in handy in helping establish your business by obtaining the necessary permits and licenses required. Not all businesses require similar licensure and permits from the government. Operating without proper licenses can lead to legal grapples and possible fines or even imprisonment. Such can be avoided by seeking the opinion of qualified Boss Litigation Lawyers and business attorneys.
Establishment of internal regulations
As a newly established business, it is required of you to establish an appropriate internal governance structure and regulation which binds all employees and customers. In most cases, the government provides a legal framework which guides key elements that should be emphasized upon such as employment law and contractual agreements between your business and external parties. When constituting the internal regulations, the relevant government legislation should be taken into consideration. Hiring a business attorney would, in this case, analyze every government legislation that pertains to your business, therefore helping you to appropriately constitute the relevant internal regulations.
The attorney services will also come in handy in helping you established contracts and contractual agreements between your business and other businesses. Such agreements should stipulate the extent of liability that your business bears when dealing with third parties. This helps protect your business from undue liability in cases of adversity in transactions. In addition, the attorney also comes in handy in preparing other appropriate terms and conditions for business-customer relations. Such rules are the ones that govern warranties and the businesses’ overall liability to the customer during transactions. Such a legal foundation gives you an opportunity to avoid possible legal suits in unprecedented cases.
Depending on your area of investment, you may require, from time to time, to file for patents as a way of protecting your business. The process of filing for a patent on products and services is quite complicated and time-consuming. In addition, you are also required to comb through numerous legal documents pertaining to the process and what it means for your business. To protect yourself from possibly infringing patenting law, as well as helping save you much time, you will need to hire legal services from a qualified business attorney to help you secure the patent in a timely manner. The attorney would also help simplify the patent law for your business, therefore giving you a head start when it comes to protecting your goods and services from being cloned, something that may cost you much revenue.
Large-scale business transactions
With time, your business may grow and need to expand to obtain new territories or establish new branches. This may be accompanied by the need to perform large-scale business transactions such as obtaining loans and even forming mergers and acquisitions with other companies and businesses. Such large-scale transactions are normally based on the law and defined within government regulations. It is required of each of the two businesses involved in the transactions to establish their own legal stipulations governing the process. During the event of such large transactions you may, therefore, need the services of a qualified business attorney who will help frame your terms of engagement as well as negotiating with the other business. Without these services, you may end up putting your business on the receiving end as far as liabilities are concerned. The lawyer will also help identify potential loopholes and risks that your business may run into when transacting with banks and in the process of mergers and acquisitions. Failure to foresee such potential loopholes can dent a major blow to your business.
Protection of your business against lawsuits
Over time, your business may be subject to some legal tussles and lawsuits from your employees, customers, or even other businesses. The legal stipulations that govern a particular lawsuit may be complex and beyond your understanding, therefore prompting you to hire a qualified attorney who would ensure that you are appropriately represented in court. Whereas there is no guarantee that such legal representation will always have your business winning in legal tussles, your attorney would help argue out your points in court, thereby helping arrive at a fair ruling. Having a special attorney attached to your business ensures that every legal issue that arises is appropriately and amicably handled.
In conclusion, your business cannot survive in the market today without proper legal representation. Hiring a qualified business attorney gives you an opportunity to resolve every legal issue that your business may be exposed to from the business foundation stage to the growth stage. The functions of the attorney in reference to your business would thus help safeguard yourself from legal issues that may drag your businesses’ progress behind.