With all your talent, boldness, and courage, your startup is built to succeed. However, you may be missing one key piece of the puzzle: all that legal stuff.
Unfortunately for all business owners, these matters of passion and skill can quickly become litigious, no matter how good your intentions are with your product or service. There’s always going to be an unhappy customer or a partner that feels cheated
Whatever it may be, don’t despair—here are the five reasons why you’ll want to invest in a lawyer now to avoid legal troubles later.
#1: Keep Your Taxes in Check
Just because you’re starting your business from home, doesn’t mean you can avoid the various rules and regulations of office-based entities. The IRS will certainly scrutinize you with the same hawk-like eyes, no matter where you’re typing out code or designing new products.
That’s why a startup lawyer is essential for keeping your business taxes in check, so you don’t have to deal with a damaging and time-sucking IRS audit at the end of the year. Not to mention, a lawyer will help you save money by identifying what household items you can count as business expenses on your tax returns.
When tax season comes around, you’ll be grateful a lawyer has your back.
#2: Craft the Perfect Contract
When establishing a startup from home (or from anywhere, really), you’ll want to draw up contracts with suppliers, customers, and partners that are absolutely solid. For that reason, startup lawyers are ideal assets for any business—because every business will encounter a commercial law issue at one point or another.
Armed with high-speed, robust AMD Laptops and the brains to match, these expert litigators are here to assist you in the ins and outs of contract law, so you’re never caught by surprise.
Drafting solid contracts will help you avoid these money- and time-sucking problems in the future:
- Employee misclassification suits by the IRS
- Issues with customer privacy and compliance
- Employment agreement breaches
- Unlawful termination suits
- Breaches in company bylaws
- Partnership disputes
- Holes in user agreement contracts
- Negligence lawsuits due to injured parties or property damage
#3: Stay Compliant within Your State and Country
You’ll need to register your startup with the state to achieve recognition as a legal business entity. A startup lawyer will help you fill out that paperwork so that you can legally hire top-notch employees, kickstart your cash flow, and stay compliant within your state and country.
Hiring a lawyer from your area is ideal for ensuring compliance with rules and regulations for selling and purchasing byproducts in your jurisdiction. If your product is in a specialized field, dealing with data and privacy, or working with health information, be sure your lawyer is familiar with regulations like HIPAA, FDA standards, and GDPR.
#4: Avoid Liability
A startup lawyer, leather briefcase in hand, will have the experience and know-how to analyze your business practices to determine where and when you may be held liable for injury, property damage, or financial losses. This awareness is vital for crafting solid contracts and agreements, implementing proper labels and warnings, and advertising carefully to avoid future litigation.
They will also assist you in determining what studies, research, surveys, or scientific backing you need to ensure that you have a proper basis for your product or service.
#5: Maintain Strong Partnerships
Lawyers are also ideal for maintaining strong bonds between you and your business partners and employees. Not only will they help you draft contracts and agreements that ensure everyone benefits from the partnership, but they will also be there to back you up should a disgruntled partner file a claim.
Invest Now, Benefit Later
Just like buying an expensive suit or shelling out for top-notch management software, investing in a lawyer is a large expense that is completely worth it in the long run. You’ll release a huge sigh of relief when you realize that litigation is a breeze because your contracts are solid, and your business practices are bullet-proof.
So, no matter how big or small your startup is, never neglect the importance of budgeting for an excellent startup lawyer. That way, you can concentrate on what you do best.
Now, get up and start your startup!