18 Apr 8 Times Businesses Don’t Call an Attorney (But Should)
8 Times Business Owners Don’t Call an Attorney (But Should)
Most business owners wear a lot of hats. Whether it’s sales, HR, marketing, or any other facet of your business, you’ve likely spent a lot of time managing something that you are not completely familiar with.
While there are many aspects of running a business that can be done on the fly, one area that should never be underestimated is your legal team. While some work might be able to be completed on your own, there are a lot of aspects of owning a business that need the attention of a real business lawyer.
Keep on reading to learn 8 times when you should take off the in-house lawyer hat and hire a business lawyer.
1. When you start your business
Unfortunately, it takes more than just a good idea to get a business up and running. Fortunately, with an experienced business attorney by your side it doesn’t take all that much more than that.
A business attorney can help you with all facets of starting a business, including deciding on a business structure and drafting formation and organizational documents.
While much of this may seem simple, with an experienced attorney, you are able to ensure you are on a solid footing from the start. This is particularly important when deciding a business structure, as it will ensure the type of structure you choose will work for the type of business you’re starting.
Most of all, it will ensure that your legal bases are covered so you can focus what matters most — getting your business off the ground and established.
2. When you’re trying to buy or sell a business
Unlike a car or an old bicycle, selling or buying an existing business requires more than just a handshake agreement. Between negotiation, risk assessment, drafting contracts, and going through the legal formalities, it’s crucial that you have someone experienced on your side.
Business transaction attorneys are experienced in all of these areas of law and can be an asset whether you are buying or selling a business. They’ll not only be someone to bounce ideas off of and help advise on market conditions, but can help make sure that no stone is left unturned in your pursuit of a sale or purchase.
3. When you or someone involved in your business broke a rule
Be it due to negligence or something out of your control, ignoring a rule violation will not make it go away. If you, your business, or an employee breached a contract or regulation, hiring an attorney is a crucial first step.
Business attorneys can help you defend against complaints, lessen fees, mitigate penalties, and in general navigate any fall out from a violation. An attorney will also be fully on your side and be a dependable partner as you navigate the legal system. Your attorneys #1 goal will be to help you and ensure your risk exposure is limited as much as possible.
Ignoring the violation or breach, or trying to navigate the fallout without any attorney can lead to increased fines or additional economic damages. Do not make this mistake!
4. When writing a contract
When it comes to agreements between you and your partners, employees, shareholders, or anything else, the side with the better contract team often gets the better end of the deal.
We’ve run into many business owners who tried to draft, edit, and sign contracts without an attorney on their side — they often regretted it. Why? Because without an experienced business attorney, you are destined to have something fall through the cracks that can lead to an unfavorable situation down the road.
Business contract formation attorneys have seen it all before and know how to draft a bulletproof contract that will put you and your company in a position to succeed. Just as importantly, it will give you peace of mind that the agreement you intended to make is the one that you will live with.
5. When you are dealing with a disgruntled employee
When dealing with potential legal problems with employees, it is crucial to not take the wrong steps. Even if you or your business are not at fault, disgruntled employees can cause a lot of problems for you and your business.
Employee litigation attorneys can help you manage any fallout and navigate the difficult waters resulting from a former or current employee filing charges or making accusations against management or your business. They’re experienced and know how to handle most problems with the right balance of aggressiveness and nuance. They can also help manage problematic current employees so that your business can continue to operate with fewer personnel dilemmas.
6. When working through shareholder or LLC member issues
Sometimes the most difficult problems to solve are the ones between you and your partners. Issues with LLC members and shareholders are extremely common, and can be one of the most complex issues to solve. Often, these problems can completely upend a business, causing it to be broken up, go out of business, or result in a management change.
Business attorneys will work with you to gain an understanding of the situation and help you so that a workable solution can be found and you are left in a good position at the end of the day.
7. When you’re being sued
Even if there is no legal merit, being sued is never fun. Many business owners’ first instinct is to respond aggressively and decisively to baseless civil litigation, or even to ignore it all together.
The better course of action is to work with a business attorney to sort through the litigation and determine the best course of action together to ensure the best outcome for you. Even in instances where there is cause, working with an attorney will make sure that you are put in the best position to succeed and limit or eliminate damages.
8. When a partner has breached a contract
No matter how rock solid a contract is, it is not going to prevent some parties from breaching it. When this happens, it can be hard to know where to turn to figure out how to get what is rightfully yours.
Breach of contract attorneys can help you work out a response that is going to lead to the best outcome for you. Often, parties breach contracts due to means outside their control. Other times, they know what they are doing and try to get away with it. In either case, an experienced attorney can lay out your options and help you execute your chosen game plan. This could be recouping damages, filing litigation, or otherwise getting you started on a path towards getting back what is rightfully yours.
At JJH Law, our business attorneys are always on your side
Let’s work together to help your business thrive. Whether you need help starting a business, solving problems, acquiring new businesses, or anything else, we’ve got an experienced attorney that can help.
Contact us today to get started.