Roles of lawyers in small business

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There are several reasons why companies would consider hiring lawyers, both to the large corporations and small businesses. Matters such as marketing, operations, and advertising will require you as the business owner to think of hiring a lawyer as they seem more pressing. These legal issues might not be a direct concern to small business owners who defend themselves by paying for such services. However, read on to see the roles lawyers play in small businesses.

Corporate Governance

Lawyers play a vital role during the incorporation of the small businesses, and further extend their services in maintaining this status. Business lawyers offer various legal services for small business such as advising their commercial clients to have annual shareholder, director, or partner meetings. Similarly, certain types of businesses are required to keep a record of their minutes and election procedures. Failure to comply with this will result in catastrophic consequences for the company.

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Work Agreements

Even though most businesses start as single-person operation, with time business owners will learn the importance of employing people for their business to thrive. Therefore, business lawyers assist their clients in drafting employment agreements, including non-disclosure agreements, employment contracts for a specific duration, and non-compete agreement. States have specific rules regarding the termination of a non-compete agreement, the geographical vicinity of such a contract and the scope of the deal.

Collections

Customers often stop paying their bills, and this can cripple the cash flow and most of their operations. Therefore, business lawyers may aid in collecting past-due accounts for their clients. Additionally, business lawyers can help small business owners with court cases by providing them with advice about how to present their evidence and even support the case.

Intellectual Property

Before launching the business, you need to take steps to protect your intellectual property. Intellectual property includes business name, logo, and brand name. Additionally, companies may have intangible assets that need to be protected. They include architectural blueprints, creations, computer software, and devices. Depending on the type of business, some may also need patent protection. Therefore, business lawyers assist their clients with acquiring the necessary copyright, patent, and trademark registrations that are essential to protect critical elements of their business.

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Business Formation

Small business lawyers ensure that the incorporation of new business is a success, hence assuring them a secure legal footing. Additionally, they help in developing a business structure that limits personal liability.

Exit Policies

The same way lawyers play a vital role during the formation of the business, and they also help in developing policies that are used during the dissolution of the company. A business partner or significant shareholder may decide to exit the business. In such a case, there should be plans to allow the market to close or remaining members to buy the party’s share of the company back.

Conclusion

In summary, business lawyers play numerous roles in the development of small businesses and in ensuring their sustainability. The lawyers also offer various legal services for small business to ensure their clients are satisfied. Such functions include corporate governance, business formation, and creating a privacy policy for the company.

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