Setting up a new business is an exciting time; however, it can also be one that’s full of uncertainty.
There are many reasons why you need a lawyer when starting a business, including many of which you may have overlooked. In this article, we examine each of these areas to set you on the right track from the start.
Business Structure
It can be difficult to research and make decisions regarding your business structure, especially if you’re new to business ownership and are unfamiliar with the terminology.
The structure you choose for your company will have a substantial impact on its legal and operational risk, protection of assets, tax obligations, and legal fees.
There are four main business structures, these being:
- Sole traders
- Partnerships
- Companies
- Trusts
Structures can be changed to accommodate your company’s development, however, altering legal structures can be complicated and costly, so getting the right structure at the inception of your business can save headaches later on down the track.
A lawyer can help you carefully select the correct business structure to ensure it best represents your future ambitions. They will also provide you with legal advice regarding your business structure and obligations.
Contracts
When your company begins dealing with vendors, suppliers, clients, or any other third party, you’ll need legal agreements in place to guarantee that all parties involved are on the same page.
A lawyer can help you discover all the contracts you’ll need to protect your company. An example of a few contracts your business may be required to have include:
- Employment agreements
- Terms and conditions
- Nondisclosure agreements
- Intellectual property assignments
- Client information protection and storage
A lawyer can assist you in drafting these details, or even lead you through the process of creating templates that you can use during these common business scenarios.
There are also some contracts you might need help with before you sign on the dotted line. This is particularly true when leasing commercial property or applying for a business loan, for example. These contracts are often filled with legal jargon, so it’s vital to seek professional advice before you make your commitments.
Trademarks
If you’ve created the perfect name and slogan for your company, you don’t want anybody else to be allowed to use it. Obtaining a trademark is therefore critical to establishing a distinct and powerful presence in your industry.
A lawyer can assist you in registering a trademark to prevent others from exploiting your unique business name, slogan, or logo, protecting your brand and public image.
Creating Internal Bylaws
A company’s bylaws are the internal regulations that determine how a business is conducted. They’re outlined in a formal document adopted by a corporation’s board of directors and describe crucial decision-making and voting practices.
This helps to guarantee that, even when directors and officers come and go, there’s a uniform process and agreed-upon protocols.
Bylaws are useful for steering company growth over time, especially if you want to attract financing through lenders and investors.
They can be complex to write yourself, however, so a lawyer should be your first port of call. By having legally compliant bylaws in place, you can:
- Guarantee that everyone knows and follows the same rules
- Make the business’s operations transparent
- Resolve conflicts both internally and in court
In Summary
From business structure and client contracts to trademarks, bylaws, and everything in between; it’s during these early stages that you’ll need to set the right legal foundations.
If you or someone you know wants more information or needs help or advice, please contact us on (03) 9422 5439 or email laurie@irvinelawyers.com.au.
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