Running a business is a complicated process. It often requires input from outside factors like lawyers and people aware of related issues. This is because a business is not just about the commercial factors but also legal factors. This is especially true for big businesses which have deals with various other companies and people. One can visit this website to avail of various other legal services related to the same.
But a legal advisor or legal advice is not always necessary for every business. Some businesses might not even require that and hence it is important to know when one should get legal advice for their company. Following are 6 signs that might tell one if it is time for one’s business to get legal advice:
1. Confusion while structuring the business
If one has decided to put down the business in paper and structure it, it is advisable to get some legal advice. This legal advice can be with regards to one’s drafting clauses stating the functioning of the company and its structure. This is mainly required for startups and entrepreneurs who are just starting out.
The structure of the company also includes operating agreements which refer to documents that specifically state the role and function of each partner and owner of the company. This will give one’s business a legal foundation and legal support which will help in resolving and preventing any future confusion and disputes regarding the same. It will also make the whole business running process a lot smoother since every partner will be aware of their role in the company.
2. Need for a trademark
New businesses as well as businesses that have recently had a sudden growth in the market often require a registered trademark to curb the competition and establish themselves in the market. Although this process can be done without any immediate legal advice from a professional this can be a bit of a tricky process for someone who is doing it for the first time. Hence if a company is looking for a Trademark registration but does not know how to go about it it is good for them to get some legal advice from a professional lawyer.
3. Facing issues regarding employment and labour laws
Businessmen and entrepreneurs who do not have any experience with regard to labour laws, as well as employment laws, can run into a tricky circle of exploitation which can be detrimental to the reputation of the company. Hence before opening for the hiring of new employees and labourers, a company should be aware of the labour laws of that particular country and area.
Legal advice can play an important role in making this possible. A legal advisor can help one’s company frame good hiring clauses and terms and conditions for them that are in compliance with the current labour laws. This will keep the company safe from future cases with regard to the exploitation of employees and labourers. Moreover, it will make the company more reliable amongst people who want to be employed.
4. The problem in the making contracts
Contract farming can be a tricky process especially if one does not have expertise in that area. Having a legal advisor in such a case is very crucial for every company. One needs to ensure that the clauses in the contract framed between two companies or between a company and an individual are not biased against the company.
This can only be ensured when the company gets reliable legal advice which helps them frame clauses that are favourable to them. This will help the company have good contracts and relations in the long run. This will also reduce the chances of the company being sued in the future for misunderstanding the contract. It is always advisable to get once the contract is approved by a lawyer before signing it.
5. The problem in relation to taxes
Various companies are faced with different kinds of taxes that they need to keep a track of. This is badly not an easy job for new companies and new entrepreneurs who do not have such kind of experience. Hence, having a good legal advice team who has expertise in taxes and tax laws can prove beneficial to save the company from future lawsuits in relation to taxes or their exemption. It will also give the company clarity regarding the same.
6. Problem with mergers and acquisitions
A major part of a company’s growth comes from mergers and acquisitions that the company decides to do. Since mergers and acquisitions are not just about the internal matters of the company it is important to get legal advice in relation to such issues.
Having legal advice in such cases will make it easier to deal with the company, individual as well as investor. It will make one more aware of their rights and power as a company and will help them come up with the best way forward for them. Moreover, it can help one save themselves from exploitation at the hands of a more powerful company.
Hence it can be concluded that legal advice from the right person is very important for any business. It helps a business in different phases of its existence and helps it grow and protect itself from exploitation. It can make a business more reliable and trustable in the eyes of others while also keeping it safe from lawsuits.
Getting timely legal advice is also helpful for businesses to know all the terms and conditions before they sign any contract. All these things help a company establish itself and grow without facing very harmful legal consequences in the future. Moreover, it makes the company more legible in the eyes of the investors and other companies that choose to collaborate with it.
For this many companies either choose to get legal advice from certain independent lawyers or from an in-house counsellor. It is good for a company to ensure that it is getting legal advice from reliable sources.