7 Reasons Lawyers are Important Part of Business

Posted by Candice Larson on June 29th, 2018

Hiring a lawyer is similar to asking for services of plumber; you need them when there is a problem. Companies and various businesses need a lawyer for legal issues. It would be a smart move to hire a lawyer for the company to prevent legal problems and ensure the protection of the business against any unexpected troubles within or outside the company.

Below are the reasons why your business should hire a lawyer:

Helps with creating contracts

You will need a lawyer who can understand your business quickly; prepare the standard form contracts you will need with customers, clients and suppliers; and help you respond to contracts that other people will want you to sign.

Takes care of the corporate governance

While most corporations will use an attorney to help with the process of incorporation, new businesses sometimes neglect the on-going legal requirements to maintain their corporation status. Annual shareholder, director and partner meetings need to be held, and recording of minutes and election of officers must conform with the state requirements. Failure to do so could jeopardize corporate status and result in "piercing of the corporate veil" in the event of a lawsuit or other legal action, exposing corporate officers to personal liability or other legal problems.

Look after the real estate

Leases of commercial space like offices and retail stores are highly complex and are always drafted to benefit the landlord. Because they tend to be "printed form" documents, you may be tempted to think they are not negotiable. Not so. Your attorney should have a standard "tenant's addendum," containing provisions that benefit you, that can be added to the printed form lease document.

Assess employment agreements

Many companies, especially technology companies, count the knowledge of their employees as some of their most important assets. Yet they fail to protect those assets through non-disclosure and non-compete agreements with their employees. Inevitably, some employees will leave the company, and it is important to protect your business against their taking their knowledge of trade secrets with them over to the competition. They can also help in explaining the importance of compensation law for all employees.

Help is taxes and licenses

Although your accountant will prepare and file your business tax returns each year, your lawyer should know how to register your business for federal and state tax identification numbers, and understand the tax consequences of the more basic business transactions in which your business will engage.

Formulates exit strategies

Entrepreneurs sometimes are so focused on starting a new business that they do not consider what happens if one of the principals leaves the business. When a partner or major shareholder decides to suddenly exit, it can potentially threaten the ability of the business to continue operating. Closely held corporations need to have buy-sell agreements or buy-back agreements to ensure that partners or major shareholders can sell their interest without legal entanglements or placing an undue financial burden on the company.

Evaluates intellectual property

If you are in a media, design or other creative-type business, it is certainly a "plus" if your lawyer can help you register your products and services for federal trademark and copyright protection. Generally, though, these tasks are performed by specialists who do nothing but "intellectual property" legal work. If your lawyer is an expert in small businesses, then he or she should have a close working relationship with one or more intellectual property specialist.