Managing a small business is without a doubt costly as you have to take pains of your lease, inventory, staff, equipment, debts, operations, cash flow, data, customers, together with your own personal well-being. The legal costs may not be in your checklist. But why wouldn’t it? You’re expecting things to go well without any troubles. And they might … until they don’t work the way you expected.
At some point or later, legal advice is needed by everyone and a business is no exception to this rule. For a business to succeed, it needs to have its legal status strong and sound. Meaning you needs a legal advisor or can get help from a registered law firm. Yes, it can be an additional cost to your small business but it will save you a lot of money later. Creating a strong business foundation is easy if your business is acquainted with relevant laws and regulations. It confirms that your business can foresee and respond to changes.
You might need a legal advice at some situations when it can actually save some money later.
When Partner Is About To Leave
You have a solid business idea and initiated the idea with your best friend. Running a business with the person you knew well is going to be great but out of the blue something started happening and the two of you seems to have issues. Both of you are now seeing the business in different directions and no longer on the same page. What’s next?
In such situation, taking legal advice will save you a lot of time and money by deciding upon business planning, entity type, partnership agreements, working agreements, and buy-sell agreements. The chances of arguing on matters depart because measures and procedures are already in place. You only need a little legal advice early, instead of having a dispute with your partner later.
Always Have A Contract
You had this great idea of organizing an event with other business community. Few friends want to help in catering the event and you’ve shaken hands with them and happy as you made a great deal. And when the event starts, caterer comes with food for 100, instead of food for 300, now you’re stunned. Soon you want to refer back to the contract and realize you didn’t have one since you were dealing with a friend. What now?
A legal advisor will always tell you to “ALWAYS HAVE A CONTRACT”. Whether you are dealing with a friend or with anyone – having a contract in place is a must. Some people make honest mistakes while some are falsehearted and manipulative. Having a legal contract to support a handshake will be useful especially when you’ve paid thousand dollars.
Inattentive To Rules & Regulations
Inattentive to changes in rules and regulations can cause you serious harms in the business. There might be the situation when your business license goes invalid because you didn’t know the renewal policy changes, there are IRS changes to the tax regulations and you owe back taxes on many things, or you simply couldn’t keep up with the accounting principles. Re-establishing means repaying everything once again.
You know that as a business owner you have to deal with hundreds of things daily. So, it’s better to leave such matters to a legal expert who know the rules and regulations and can work it out for you.
You will find many legal firms or solicitors that are willing to help small businesses like you in legal matters. If your main concern is trust while working with them, ask help from your loved ones or colleagues. Discuss matters with people you trust and respect and get their views on legal firms or attorneys around. You shouldn’t wait for a legal expert or lawyer until your business experience a problem, because you might unable to find one when you really want to. So, prepare yourself in advance and get help from the legal experts to save money and time later.