Small business owners often make the mistake of thinking that they don’t need to hire a lawyer because they’re too small. But lawsuits can be much more disastrous to a small business than to a bigger one. A big company can cushion the blow of a multi-thousand or multi-million lawsuit, while it could be enough to decimate the average small business. Let’s take a look at a few reasons why every small business owner should consider hiring a lawyer.
They Will Allow You to Avoid Crucial Mistakes
Business owners can make lots of mistakes when they’re getting started, and some might seem minor in their eyes but have severe repercussions. One of the areas of law many small business owners don’t fully understand is copyright law.
As an owner, you could end up violating someone else’s copyrights without even knowing it. Maybe you’re using a logo and color scheme that looks too much like theirs or infringing on someone’s patent in your designs. Copyright violations can have very serious consequences and even lead to a felony charge, so consult with a copyright lawyer when you’re creating anything, whether it’s your prototype or a website.
They’ll Help You With Compliance and Liability
If you’re in a tightly regulated industry, working with a lawyer is also very important. A lawyer who understands your industry in and out will be able to tell you what you will need to be compliant. They might inform you of which permits and licenses, you’ll need to operate lawfully where you are. They may also help you with changes in regulations at different stages of your operation, such as when you get over a certain number of employees, for instance.
A lawyer will allow you to predict liability issues or defend you if you get targeted by a liability suit. They will be able to tell you what type of insurance you should take or what you may need to do to protect your employees.
Better Structure Your Business
There are still many business owners who don’t know the differences between business structures and which ones would be the best for them. A lot of them will automatically assume that forming an LLC is better until they have to bring shareholders in. A business lawyer will look at your business and your goals along with the tax and administrative benefits of different structures and will allow you to see the pros and cons of each.
They Can Work as Consultants
A lawyer can also give you some very valuable advice that will allow you to be a better business owner. They can help you create a better business plan or warn you of coming changes in your industry. They could also give you tips on how you could structure your operation to take advantage of different benefits.
These are all clear reasons why all small business owners should work with a lawyer from the moment they start. You’ll avoid lots of trouble and significantly improve your chances of succeeding.