The Job of a Lawyer for a Startup Business
When you start a new business one of the first things that you should be doing is finding a lawyer. There are a lot of legal issues involved in starting a business and mistakes can be very costly. Ideally you should try to have a lawyer involved right from the start so that they can make sure that everything gets setup properly in the beginning.
The first thing that a lawyer is going to do for a start up business is to help the owners decide how the business is going to be structured. There are a few options in this regard but it ultimately it comes down to whether or not to incorporate. There are advantages and disadvantages to both and it is important to understand the legal ramifications of the choice that you make. Once you have made your choice your lawyer will help you to get your business set up in the proper way.
A lawyer is also important for a start up in helping them to make sure that they comply with all of the necessary laws and regulations. You cannot simply start a business; there are permits and licenses that have to be acquired first. In order to get these permits there are usually legal requirements that you must meet. A lawyer will help to make sure that you meet these requirements and help you to fill out the necessary paperwork to get all of the permits that you need. Matthew Mohwinkel of New York points out that the rules vary from state to state so don't assume that you are good because you meet the requirement of one state, a lawyer can help you to make sure that you meet the legal requirements everywhere that you want to do business.
When a new business starts to raise money they are also going to need the help of their lawyer. It is important to make sure that you understand the terms of the deal that you strike when you borrow money or seek investors. There will of course also be contracts involved and these will need to reviewed by your lawyer as well.
One other important area where a lawyer can help you with a start up business is to make sure that your business is properly protected. This requires that he look at the areas where you might have liability issues and provide advice on how to reduce the risk. This may mean a change in the way that you do things or it may mean getting insurance to cover any damage that may be done. When it comes to buying insurance your lawyer can be a huge help here as well as he will be able to help you determine what types and how much coverage you need.