Running a successful business enterprise requires the assistance of various experts. Apart from professional accountants, marketers, asset managers, and staff recruiters, you’ll also need to work with a corporate lawyer.
This article explains what a corporate lawyer does and why you may need one for your business. Continue reading to get enlightened.
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Overview Of A Corporate Lawyer
A corporate lawyer is a type of attorney who specializes in corporate law. Their primary responsibility is to advise business owners of their rights, duties, and obligations under the statute law.
When you hire a corporate lawyer as a business owner, their work will be to represent your company as a legal entity and not your employees or shareholders. In other words, they’ll help handle your corporation’s legal issues. For information about corporate lawyers and how to find one, you may visit GLG LLP law firm or any other similar legal service provider.
Reasons To Hire A Corporate Lawyer
There are several reasons why you’d want to hire a corporate lawyer. These include:
- Choosing The Right Business Structure
You might think you need a corporate lawyer only when a legal issue arises, but that shouldn’t be the case. Frankly, a corporate lawyer is necessary even before you launch your business.
One of the many challenges entrepreneurs face when starting a business is deciding which company structure is good for them. This is because of the many factors and elements in various business structures.
Thus, you can consider four major business structures when starting your company: sole proprietorship, partnership, corporation, and limited liability firm. These business structures differ in how you pay taxes, share profits or returns, and the extent of your other legal liabilities. However, as a new business owner, you might find it hard to figure out the difference between the four company structures, so you need a corporate lawyer to understand them well.
The right corporate lawyer will advise you on the best structure to select for your business. This ensures you build a successful business to achieve your objectives faster.
- Forming Legal Contracts
Running any business involves working with other stakeholders. For instance, you may want to find a supplier where you’ll be sourcing your products.
Besides, you may want to source money from banks and other financial lending institutions. Apart from that, you may consider working with professional service providers at some point in time. This means signing contracts with all these parties.
Developing a corporate contract isn’t always an easy task. It requires a lot of time and a better understanding of contract terms. If you’re not careful, you might end up signing unfavorable or illegal contacts. You can avoid that by hiring a corporate lawyer.
The hired lawyer will be responsible for helping develop or draft the company’s contracts. They’ll also interpret complex terminologies to ensure you effectively understand the terms of the contract. This enables you to comply with the law when forming partnerships with third parties.
- Preventing Lawsuits
You might face a lot of legal liabilities in the course of running your business. One of them is employment lawsuits. This occurs especially when you fire workers without following due process.
There are several dangers of facing employment lawsuits. For instance, the court may order you to compensate the illegally terminated workers, affecting your business finances.
Apart from that, you’ll likely need a lot of money to safeguard your company against lawsuits, so you need a corporate lawyer to defend your case.
You can consult your lawyer before taking any significant action. This goes a long way in helping prevent lawsuits against your company.
- Spreading The Word About Your Company
Although some business owners ignore it, promoting a company is another critical reason to hire a corporate lawyer. Corporate lawyers aren’t marketers by profession, but they can help spread the word about your company.
Aside from your company, the chosen lawyer may be working with other partners in various fields. They might also have relatives and friends who may be interested in your products or services. Therefore, an excellent corporate lawyer will help you reach these potential customers through word of mouth. As a result, you’ll likely generate more leads that may translate to sales.
Takeaway
As you’ve seen in this article, there are many reasons why hiring a corporate lawyer is essential for the growth and success of your business. However, ensure you get the services of a credible attorney with suitable qualifications and work permits, experience, availability, location, etc. With this, you can be assured you have the defense you need in case of any lawsuits in the future.
