- Are you someone that is concerned about the merits of a particular type of company set-up?
- Do you know what are the legal obligations or accepting payments in foreign exchange?
- Can you successfully handle a complicated M&A deal, sell-outs, or equity stakes with another start-up?
If you answered in the negative to any of the above questions, you need to seek the help and intervention of expert business lawyers!
A business lawyer is an invaluable asset for any business organization. While start-up entrepreneurs feel that they can do everything on their own, the fact of the matter is that they cannot.
There is no denying the fact that start-ups need to hire specialized business lawyers to help their growth stories and strategies. In this article, we are going to look at the importance of hiring a business lawyer for your start-up.
Our Business Lawyers Important: What Start-Up Entrepreneurs need to know?
First things first. No matter which nation you are conducting your business in, you need to contend with commercial laws. In other words, there are several hundred business, commercial and financial laws that you need to be aware of and follow as a business organization.
The stakes for compliance are very high. This is primarily because failure to abide can lead to fines, penalties, suspension of licenses, as well as imprisonment for officials and the business owner. This can erode your business, cost your credibility and destroy your customer base.
Businesses are subject to the following types of laws-
- Federal Laws
- State Laws
- City Laws
- District Laws
- County Laws
The interesting bit is that business laws, rules, and regulations are not static. In other words, they keep evolving and changing; sometimes once a year! To keep track of the same and ensure that your organization does not attract any legal troubles from the authorities, you need business lawyers. If you want to hire an experienced law firm in Dubai, know more here.
5 Important Areas where Business Lawyers can help Start-Ups
1. Company Incorporation and Structure-
The first way a business lawyer can help your start-up is by informing you of the best company set up for your organization. While you can choose between a proprietorship, LLC, JV, and other forms, the business lawyer will inform you what would suit your business the best. They will be able to evaluate taxes, ease of paperwork, personal involvement, and more.
2. Doing Deals and Businesses with Foreign Companies-
Sending and receiving payments in foreign exchange is not as easy a legal process as it sounds. You will have to do the paperwork to explain the nature of your business and where your payments come from.
If you work with 100+ clients, good luck in taking the regulator through each one of them. A business lawyer can help streamline the process to ensure no problems take place.
3. Copyright and Intellectual Property Rights and Protection-
There has been growing awareness around issues of Copyright and IPR in recent times. Businesses are careful when it comes to brand markers, designs, and product quality.
Start-ups need to work with business lawyers to ensure that others are simply not stealing their ideas and creating similar products and services. In this regard, a business lawyer can be helpful.
4. Deals, Negotiations, Contracts, and Agreements-
During the course of their life, a start-up would need to sign multiple contracts with employees, vendors, VC firms, or other investors. It might also need to take loans from banking institutions.
All this means paperwork that should be created in a way that does not undermine the interests of the start-up. This paperwork can and should only be done by trained legal experts.
5. Helping with Employment Law, Compensation, and Rights-
There have been several reports which stated how employers in some start-ups were quick to file lawsuits with the aim of extorting financial gains. To prevent something like this from draining your start-up financially, it is best that you hire business lawyers that can help you with employment law. This will reduce your exposure and ensure you carry on.
The Bottom Line
Whether you are looking to start, sustain or grow your start-up, you will need help from a business lawyer or law firm. Without the same, you stand to tread into unknown waters which can prove to be risky for your start-up. If you would like us to address any specific issues on the topic, or want to take help from business lawyers, please let us know in the comments below.