4 Instances Where Small Businesses Should Seek Legal Help

Small businesses – a lifeline for the growing and unpredictable US economy.

Contributions from these small-sized enterprises make up 44 percent of the US economy. These businesses also employ almost half of the total US workforce. Hence, it is no wonder that 86 percent of US adults agree with the idea that small businesses have a positive effect on the country.

US citizens interested in running their own businesses almost always opt to start with something small. Between January and April of 2024, around 1.75 million new business applications were filed, many of which were for small-scale business ventures.

Of course, running a small business is no easy feat, even for people with loads of experience in the business arena. Managing day-to-day operations, dealing with customers, and keeping up with industry trends – there’s just a lot to deal with for small business owners. Hence, thinking about legal matters may be the last thing on their minds.

But we all know this – ignoring legal issues can lead to costly mistakes, maybe not immediately but eventually. And no entrepreneur – big or small – wants to deal with headaches stemming from such legal matters.

Hence, what every small business needs is a good business attorney, at least when the going gets tough on the legal side of things. That being said, when exactly should a small business turn to legal services?

#1 When You’re Setting Up Your Business Structure

Starting a small business is exciting, but choosing the right structure is anything but simple.

Each option has different implications – be it for taxes, liability, and overall business operations. Being a bit careless about these implications and structures? Don’t; you could end up personally responsible for business debts or face unexpected tax obligations, for which you might need the services of a tax consultant to resolve.

If you don’t like thinking about these, that’s fine, but don’t hesitate to bring in a business attorney here. They will walk you through each structure, and ensure that your choice aligns with your goals while offering maximum asset protection.

#2 When You’re Hiring Employees and Drafting Contracts

Bringing new employees on board is a big step, but employment contracts aren’t something you should just pull from a random website. A poorly written contract can leave your business vulnerable to disputes over wages, benefits, or even termination policies. You need legally sound agreements that protect both you and your employees.

This is where a law firm specializing in business law can be a lifesaver.

According to Simantob Law Group, business attorneys can help draft employment agreements, independent contractor agreements, confidentiality agreements, and so on. When needed, the lawyers can also help prepare non-disclosure agreements (NDAs) as well as severance agreements.

Lawyers ensure your contracts are legally binding and include everything necessary to comply with labor laws. Plus, if you ever need to terminate an employee, it’s best to have legal guidance to avoid wrongful termination claims.

#3 When You’re Dealing with Intellectual Property

Your business name, logo, and even your products or services could be your most valuable assets. But if you don’t legally protect them, someone else can swoop in and claim them as their own.

Trademarks, copyrights, and patents fall under intellectual property law, and handling these on your own can be risky. Imagine spending years building a brand, only to find out another company owns the rights to your business name.

A legal professional can help you secure your intellectual property, ensuring your brand and creative assets remain yours.

#4 When You’re Facing a Lawsuit or Legal Dispute

No business owner wants to hear the words “You’re being sued,” but lawsuits are a reality, especially in today’s litigious society. Maybe it’s a customer claiming injury on your premises. Or is it a contract dispute with a supplier? Perhaps one of your former employees is accusing you of wrongful termination.

That’s right; in the business world, legal troubles and lawsuits can arise in many forms. The worst thing you can do is try to handle it on your own.

Business law is complex, and law students and business attorneys will agree with this. Make one wrong move and you might have to end up spending thousands of dollars to make things right. Worse: you might end up losing your entire business or even spending time in jail.

Don’t make the mistake of trying to handle legal disputes on your own; let a business attorney do it for you. They can assess the situation, guide you through the legal process, and help you achieve the best possible outcome.

Legal issues aren’t just for big corporations; small businesses need legal protection just as much, if not more. Whether you’re setting up your business or signing contracts, having access to reliable legal services can be a game-changer. The goal isn’t just to fix problems when they arise, but to prevent them from happening in the first place.

If you want to keep your business safe and thriving, don’t hesitate to reach out to a law firm when you need help.