Businesses deal with a variety of aspects and transactions, and it can get overwhelming to stay in the loop of everything. From purchasing goods and materials to taking care of payroll, taxes, and accounting, you can’t possibly stay on top of everything that needs to be done.
However, being the owner of the business, you shouldn’t forget about legal facets. Even the slightest mistake of not providing your suppliers and employees with a non-disclosure agreement, for example, can turn into big and costly trouble if you don’t take care of it accordingly. Small to medium-sized businesses, in particular, should consider hiring a commercial lawyer to provide professional legal advice, protection, and assistance.
What Is A Commercial Lawyer?
Commercial lawyers specialize in business law. They can make sure that your business won’t violate various laws and rules. Businesses involve a lot of stipulations, contracts, and numerous legal documents. Chances are, you won’t be fully hands-on on everything, especially about stuff that’s beyond your expertise. This is why you need to hire a commercial lawyer.
As an entrepreneur, closely managing your business is your responsibility. If you have a commercial lawyer by your side, you can delegate tasks that you can no longer handle on your own, such as business registration, bookkeeping, and others. Developing a professional relationship with a commercial lawyer can benefit your business in more ways than one, as they can become one of your most useful advantages in running your firm. Although it may seem like an additional cost for your business, you should look at it from a wider perspective. Commercial lawyers are beneficial if and when you know how to use them.
In case you’re still contemplating on whether or not your business needs to employ a commercial lawyer, here are some of the instances that will warrant the services of one:
1. Getting Started On Your Business Setup The Right And Legal Way
Starting your own business is more than just acquiring the needed capital, skilled workers, and market-friendly products or services. One of the first things that you need to do is to determine if your business will be registered as a corporation, a sole-trader, or a partnership. This is crucial because the form of business will determine the required tax structure for it. Your commercial lawyer can assist you with the business registration.
Commercial lawyers will help you extensively not just in procuring tax registration for your business, but also in getting your operating license. After securing these legal documents, there might also be a need for non-disclosure agreements with your employees, suppliers, and business partners.
A good commercial lawyer also assists you when leasing a commercial space for your business. The technicalities of such transactions may be overwhelming for you, especially with non-negotiable documents. Your commercial attorney should be able to help you in negotiating provisions and terms in a way that’ll benefit your business.
2. Drawing Up Business Contracts
Contracts are always the first order of business to close a deal or a sale. Don’t let the high and excitement of a new contract get in the way of what needs to be done legally and right away, and that’s to draw one and sign it with the involved parties. There are legal jargons that you won’t easily understand, so it’s important to have a commercial lawyer with you before signing. Reviewing the terms and conditions is crucial so that you’re sure that the terms and conditions are tailored to and favorable for your business.
Even when you’re co-owning the business with a family member or a close friend, you still need to get your agreement in writing to avoid legal implications. You need a commercial lawyer who’ll expertly create a contract, review it, and see to it that all your interests are protected. The same goes for dealing with clients. An iron-clad contract with the right template will make sure that it’s customized according to the needs of your business.
Keep in mind that a business contract is a legally binding document that consists of certain elements that require some degree of legal understanding. Your commercial lawyer will ensure that no potential repercussions are present and, at the same time, that your business interests and legal rights are fully protected.
3. Getting Updated On The Latest Business Laws And Regulations
Business law, just like any other type of law, is constantly changing, and there’s a tendency that you’d overlook it as you juggle all the responsibilities of owning the business. Aside from representing your business legally, your commercial attorney will also be spending time researching and learning about the latest in the world of business and the laws relevant to it.
Commercial awareness is one aspect of being a good commercial lawyer. Ideally, they should be knowledgeable of business terms and technicalities so they can better understand how to represent you effectively. When necessary, your commercial lawyer can also give you sound advice from a businessman’s point of view.
Your legal representatives should see to it that the business isn’t violating any rules and regulations, may it be concerning safety, worker compensation, zoning, consumer protection, or environmental laws. Take note that these laws change and vary, depending on the state you’re in, making it more difficult for you to oversee and comply with on your own.
4. Protecting Your Business Assets And Intellectual Properties
Business assets are valuable items that your business owns, produces, or benefits from. It can be in the form of cash, stocks, tools, and equipment, bonds, or buildings. These are called real or tangible assets, while the intangible ones are intellectual properties such as patents, copyrights, and trademarks.
Being prudent when it comes to protecting your business assets is a very important step in ensuring that your business will remain afloat for as long as possible. Knowing that running a business involves risks and pitfalls, it pays to hire a commercial lawyer who’ll protect your assets in case an unforeseen event occurs, such as lawsuits and seizures. Such events can be costly, not to mention time-consuming, as well. Having a good commercial lawyer by your side can help you recover from business conflicts that can’t be resolved without legal procedures, such as labor union conflicts or tax evasion.
5. Knowing The Ins And Outs Of Commercial Litigations
Commercial litigation is any type of controversy or litigation that’s business-related, and it’s something that your business must shy away from as much as possible. It can range from comparatively simple matters to highly intricate issues or cases that could possibly take years to resolve. Examples of these are:
- Business dissolutions
- Franchise disputes
- Contract disputes
- Partnership and shareholder disputes
- Employment disputes
- Consumer protection issues
- Consumer fraud
If your business ever gets involved in commercial litigation, improper and careless handling of the case can bring about a serious impact which may lead to unnecessary and additional expense. That being said, a brilliant commercial lawyer is needed to provide your business with strong representation and sound legal advice.
6. Preventing Problems Before They Emerge
A legal perspective may not sound too appealing at first glance, but as a business owner, it’s your obligation to somehow understand legalities. Employing a commercial lawyer will provide you with the best legal perspective that can help you avoid mistakes that could potentially get your business into trouble. They can suggest advice on how to ensure customer and employee protection, while also securing the condition of your contracts and other business negotiations.
An experienced commercial lawyer can also provide you with valuable insights regarding smart business investments or if there be acquisitions, mergers, and other business transactions. Their great attention to detail would avoid you from committing small mistakes that you easily won’t take notice of.
7. Business Dissolution
Of course, it’s your goal as a business owner to keep your business up and running, but in the event that you must end your operations for whatever reason, you can rely on a commercial lawyer to assist you with its legal aspects. Business dissolution isn’t only a disconsolate process but also stressful. It’s highly possible that you’ll overlook some of its legal aspects if you’re to approach it on your own.
You can leave the taxing legalities of a business dissolution to your commercial lawyer and let them handle the whole process. There’ll be a handful of legal paperwork involved, including the certificate of dissolution, tax forms, settlement of creditor’s claims, as well as the notification of business closure.
Another fraught aspect is the distribution of remaining assets if the business has several owners. Distributions also need to be reported. If your business is a corporation, there must be corporate bylaws and multiple stock classes applicable to it.
After reading all the reasons above, you can stop wondering why you need a commercial lawyer for your business. No matter what size your business may be, retaining a lawyer is vital if you want to lessen your burdens and focus more on the supervisory and administrative sides of your business. Clearly, a commercial lawyer is invaluable and can help you in various legal aspects of the business.
Commercial lawyers will help you understand the law, thus steering you clear of making decisions that are influenced by ignorance or fear. Moving forward, you can decide rationally and reasonably while being aware of legal implications.