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Why you need an attorney when setting up a new business

On Behalf of | Aug 12, 2022 | Business Consulting & Advice |

As an aspiring entrepreneur, you may not like the idea of sharing your concept or revenue with anyone else. However, you simply cannot identify and address every possible concern while planning a business without support, nor can you truly evaluate your own ideas and shortfalls without someone else’s perspective.

Some entrepreneurs get help from business coaches or partners. Even if you have someone willing to help with the decision-making or financing for the company, you may still benefit from having the support of an attorney. Why is a lawyer such an important resource for a prospective entrepreneur?

Your business plan may not yet be viable

If you have never run a business before or if this is your first foray into a brand-new industry, you may not know what to expect or what issues you need to address early in the planning stages.

Your attorney can help you evaluate your business plan and help you identify any shortcomings. Once you determine if the idea and the plan are sound, your lawyer’s advice may play an even more crucial role in the next stages.

You need protection from the liabilities of doing business

There is a common saying that an ounce of prevention is worth a pound of cure. You will be in a much better position to run a financially successful company when you understand the possible risks.

From selecting the right business form given the functions you want the company to perform to identifying the right kinds of insurance coverage for your optimal protection, an attorney can help you minimize your risks. They can also warn you about common mistakes, like using your personal bank account for early business transactions.

Finally, your lawyer can help you proactively put together the kinds of contracts you will need for your vendors, employees or service providers to protect your company from liability and breaches of the contracts that you sign.

Your lawyer can be an ongoing source of support

Partnering with a lawyer early in the business creation process will provide you with crucial support during a complex process. You will then also have someone familiar with you and the company you run when issues like contract disputes arise.

Getting the right help early in the business development process will limit your personal risk and provide you with general counsel as the business continues to grow.