Those bitten by the entrepreneurial bug often have a lot of motivation to do as much of the work for their startup as possible themselves. Many people form their organizations without representation or guidance. They make decisions about insurance coverage on their own and even download boilerplate documents from the internet in case they need to contract with clients or hire employees.
Many entrepreneurs assume that they can indefinitely continue managing practical and legal concerns for their businesses. However, the reality is that legal issues arise inevitably as companies grow and evolve.
Liability issues
There are many ways for businesses to take on unsustainable amounts of liability. For example, the production and sale of products could lead to liability if there are design issues or defects in the products. If they cause property damage or injuries to people, the parties affected might take legal action against the business.
Providing services can also lead to liability. Mistakes when putting a vehicle back together after making repairs, for example, could leave a repair shop liable for a crash that occurs due to the mistakes of one of the workers there. Even making facilities open to the public can trigger liability if someone falls or gets hurt while visiting an establishment.
Employee-related issues
There are many laws regulating employment practices and imposing obligations on businesses. From the need to carry workers’ compensation coverage to issues related to discrimination, there are many legal issues that can arise when an entrepreneur hires others to work at their organization.
General business practice challenges
There are a host of other sources of legal complications that could affect an entrepreneur. Perhaps they misunderstood fair use and now face copyright infringement claims from a bigger business or an artist. Perhaps they failed to secure the necessary licensing and insurance to operate within a particular industry.
Entrepreneurs already have to handle many different complex aspects of business management. They may not be in a position to learn about specific legal issues and handle them effectively. Entrepreneurs have an easier time avoiding legal debacles when they partner with an attorney familiar with business law.
A lawyer can advise someone about the possible risks related to their business model and help them acquire any necessary insurance. Lawyers can also ensure technical compliance with laws related to business operations, intellectual property and employment. If an issue does arise, an attorney that has previously supported an entrepreneur can more effectively resolve the matter than a lawyer unfamiliar with the business.
Ultimately, realizing that legal issues could affect the company’s finances or future operations may help those trying to keep costs low see the value in partnering with an attorney who can advise them on business law matters.
