Starting a new business is often an exciting and time-consuming process. As you begin to identify the decisions you must make and the steps you need to take to launch your company, it’s natural to feel somewhat overwhelmed and uncertain at times. Although some new businesses launch without the input of an attorney, seeking out legal counsel during the formation process carries several advantages. When you work with a dedicated and experienced business law attorney, you can trust that your new business venture enjoys the strongest protections possible to minimize potential risks and maximize the likelihood of success. Some business owners may not work with an attorney because they are intimidated by the initial costs, but it’s often the case that investing some time and money into forging a lasting relationship with a business attorney saves you and your business from liability or financial losses in the future. As you embark on your startup journey, consider asking the following questions of your business law attorney to ensure that your new venture launches from a stable and secure foundation.
Which Business Structure Should I Select?
Those looking to start a new business venture face several options when it comes to the type of structure they can choose. Essentially, the type of entity you select carries tax implications, so it’s important to understand the potential benefits and drawbacks of each option before settling on the one that best addresses your needs. For example, those hoping to own and operate the business on their own can discuss whether forming a sole proprietorship or a limited liability company (LLC) would work best for their unique needs and goals. Structures like LLCs and C Corps minimize personal liability for business owners, which is often an attractive benefit. Corporations, however, carry different tax considerations, so it’s best to discuss the details and nuances of each option with your knowledgeable business law attorney before selecting a business structure.
How Can I Minimize Risk and Liability?
When you picture the future of your business, it’s natural to envision a thriving and successful outcome. However, unforeseen challenges may arise that can complicate the future of your company. Enlisting the guidance of a seasoned business lawyer can help you minimize potential risks and personal liability as much as possible. For instance, your attorney can help you choose the most appropriate entity, obtain the necessary insurance, procure any applicable permits and licenses, understand and follow the best hiring practices, comply with all business laws (at the local, state, and federal levels), and put thorough business contracts in place. Business and employment laws tend to be complex and difficult to comprehend for those outside of the legal profession, so it’s best to enlist the help of an attorney who can demystify these laws and protocols. Ultimately, the goal of working with a business lawyer is to make more informed decisions with greater certainty and confidence.
How Do I Choose a Name For My Business?
It’s a common misconception that a new business can name itself whatever it wants and simply move forward. However, states have specific rules and regulations that govern the process of naming new business entities. You and your attorney will need to check with all local and state rules before you make your business name official. Additionally, there may be trademark considerations to navigate, so your attorney can help you determine whether the business name you want may lead to accusations of trademark infringement later on. Your skilled business lawyer can help you research your desired name, search for its availability, and then apply for your right to use it.
Is My Business Operating in Compliance With All Laws?
As the owner of a new business, the last thing you want is to face accusations of violating local, municipal, state, or federal laws. It can be devastating to learn that you have not complied with a specific law, especially as it can carry drastic consequences (i.e., costly fines, license suspensions, or legal liability). Before you launch your business, it’s essential to enlist the guidance of an attorney who can help you understand all of the applicable laws and regulations pertaining to your business. Should an issue arise, your attorney can step in to help you resolve these allegations of noncompliance as smoothly and efficiently as possible. Since laws and regulations change with relative frequency, you can rely on your attorney to keep you informed of any updates that affect your business.
What Should I Do if a Business Dispute Arises?
Business-related disputes are an unfortunate reality for many new ventures. For example, two people who launch a business together may initially share similar goals, but time may cause them to drift apart and disagree about how the company should operate or evolve. Disputes with your business partner can be stressful and distressing, especially if you cannot work together to resolve the underlying issue. As soon as a disagreement arises, reach out to your business attorney to discuss your dispute resolution options. Before taking the matter to litigation (which is often the most expensive and time-consuming option for resolving business disputes), work with your attorney to explore the benefits of mediation or arbitration. These options empower the disputing parties to work together in a supportive and constructive environment to resolve the matter themselves (rather than relying on a judge to issue a ruling). Businesses that have already worked with an attorney to form their venture can turn to this trusted legal professional whenever a potential dispute arises. Together, you and your attorney can identify the most appropriate and effective course of action to keep your business growing and thriving.
If you are thinking about starting a new business in Colorado, enlist the guidance of a trusted and friendly business law attorney to ensure that your venture enjoys the strongest protections as it grows and expands. Call Judex Law, LLC, at (303) 523-4022 to discuss your goals today.