A critical step in launching a new business involves preparing a business plan, and part of this plan includes a projection of startup expenses and operational expenses. Some of these expenses may be obvious, but it is easy to overlook the need to pay for professional legal assistance from corporate lawyers. The reality is that most entrepreneurs may need legal services for several purposes in the initial stages of their operations.
Establishing a Business Entity
Unless you intend to start your business as a self-employed individual working under your own name, you will need to establish a business entity. In many cases, you can prepare and file these documents on your own, but it makes sense to seek legal advice. The entity type that you select will impact your legal rights going forward, and this is especially important if you are sued in the future or if you will have a business partner. A corporate lawyer can advise you about the entity types that may be well-suited for your plans and can file the appropriate documents to set up the entity.
In many industries, businesses may need to use contracts for various purposes. This may include contracts with service providers or independent consultants, clients and others. Because these are legal contracts that can bind the business to act in different ways, they should be drafted and reviewed by a lawyer before they are executed. The business owner may also need to engage legal services if the other party breaches the terms of the contract.
Reviewing Lease Terms
While some entrepreneurs will launch a business out of their house, others will sign a lease for a business space. Commercial leases can be complex, and they may sometimes require the business to pay for repairs, utilities, maintenance and other property-related expenses that are not usually associated with a residential lease. In addition, some leases actually require the business to provide a portion of the profits to the landlord. Lease terms should be reviewed and negotiated by a lawyer to ensure that they are advantageous for the business.
Starting a business is a major undertaking, and even experienced entrepreneurs cannot tackle all aspects of a startup on their own. One of the many professionals who you may need to reach out to for assistance is a corporate lawyer. Determine if these various legal services are applicable to your specific business, and budget accordingly for them in your business plan.