Why You Should Seek Legal Advice for Your Business
Small and mid-size businesses enjoy many advantages when compared to larger companies. Unfortunately, however, being a smaller company does not exempt the company from the same legal risks and challenges as your larger counterparts. In fact, in some ways, being a smaller company can actually put you at greater risk. Many well-meaning business owners assume that their business is too small to incur the normal turmoil of larger businesses. It is only when a legal issue does arise that they recognize the severity of the situation.
As more regulatory and compliance requirements, employment laws, contract laws, and tax laws are put in place, the more important it is for businesses to take proactive steps to prevent legal issues. This is why it is so important to seek legal advice early on. By doing so, you can avoid many of the common pitfalls that trip up small businesses.
Reducing Risk and Avoiding Preventable Legal Problems
When it comes to running a small or medium business, there are a lot of moving parts. You have to wear many hats, juggle many balls, and keep a lot of plates spinning. It can be easy to let some things slip through the cracks. However, when it comes to legal issues, even one small oversight can have major consequences.
Many businesses wait until they are faced with a lawsuit, contract dispute, trademark violation or another legal problem before taking action. Here are just a few of the reasons why you should seek legal advice for your business before a legal problem arises:
- Reducing exposure to risks – By understanding the risks associated with your business, you can take steps to mitigate those risks. This might include things like buying insurance, drafting contracts, and ensuring digital information is protected.
- Creating a solid foundation – A strong legal foundation is essential for any business, no matter how big or small. This foundation includes things like your articles of incorporation, bylaws, employee handbooks, and policies and procedures.
- Ensuring that your business is properly structured – One of the first things you need to do when starting a business is to choose the right business structure. This is an important decision because it will have long-term implications for how you operate your business, how much you pay in taxes, and your personal liability.
- Building strong business relationships – Good business relationships are the foundation of a successful company. Well-written contracts create a clear understanding of the expectations and responsibilities of each party. Vague contracts can lead to misunderstandings and potential litigation.
- Remaining compliant – There are numerous regulations and laws that businesses need to comply with. These include employment laws, tax laws, environmental laws, and consumer protection laws among others. Failing to comply with these laws can result in serious penalties, including hefty fines and even jail time.
- Allowing you to focus on your core responsibilities – As a business owner, you have enough on your plate without having to worry about legal issues. By seeking legal advice early on, you can focus on what you do best and leave the legal matters to the professionals.
Utilizing Outsourced General Counsel to Prevent Legal Disputes
Small and medium-sized businesses typically do not have in-house legal counsel like many larger companies do. Fortunately, there is another option. Outsourced general counsel (OGC) services provide many of the benefits of having an in-house lawyer without the high cost. An experienced OGC will help you prevent legal disputes, violations, and problems before they occur. However, if a dispute does arise, you will have a legal professional in your corner who already understands your business and how best to protect it.
Call Us for Help
At the Gierach Law Firm, we offer outsourced general counsel services to small and medium-sized businesses that want to be proactive about preventing legal issues. We provide trustworthy advice and become part of your management team, so if an unavoidable legal problem does arise, we are fully equipped to handle it. Call our Naperville business law attorneys today at 630-756-1160 to learn more.
Please note: These blogs have been created over a period of time and laws and information can change. For the most current information on a topic you are interested in please seek proper legal counsel.