There are different ways to initiate a business. Sometimes all you need is supply and demand. In Massachusetts, creating a business can be easy. However, knowing how to start a business is not enough to protect yourself and your company from liabilities and legal consequences. Hiring a business attorney can provide stability and peace of mind.
Determining your business structure
The business structure you choose is crucial to preventing unexpected legal issues. While partnerships and sole proprietorships are easier to start with, they can present a host of liabilities and tax consequences in the future. A limited liability company (LLC) or a corporation may protect you from personal liability but are challenging to set up. You should understand each business structure thoroughly before deciding which would fit your business model best. Your business attorney can explain everything to you in detail and help you decide.
Establishing your business entity
Once you have decided on the business entity, you will need legal assistance filing, registering, documenting and drafting all kinds of requirements. If you choose a sole proprietorship entity, you do not need formal paperwork to establish the company, but you may still need help with permits and licensing. Laws vary per state. Your business attorney can review everything you need to ensure your business has a solid legal foundation.
Preventing all kinds of disputes (including lawsuits)
A business attorney can draft any legally binding document that protects the interests of the signing parties, especially you. Each business entity has a respective agreement; others can have more than one. Your company may need any of the following:
- Partnership agreement
- Operating agreement
- Employment contract
- Shareholders’ agreement
- Customer agreement
- Employee laws and policies
Regardless of the business entity you form, you will encounter business disputes. Conflicts can happen with clients, manufacturers, product and service providers, employees, partners and shareholders. Your business lawyer can write legal agreements and contracts that outline how your company will address or prevent these disagreements. Contracts must be complete and valid to account for potential areas of concern given any business relationship or transaction.
Safeguarding intellectual property
Your intellectual property is what sets you apart from other companies and brands. It gives you an identity. A business lawyer can show you how to protect your legal rights to your intellectual property.
A company may start small, but you should not let fear and doubt hinder you from letting it grow. Your business lawyer will be there every step of the way; to help you start the business and defend it.