Owning a small business is no easy feat. Starting up your own company is a challenging thing to do, but is also one of the most rewarding. There are several obstacles that one must overcome to create a successful business. These often include things such as licensing requirements, startup costs, and developing your company’s business model. Fortunately, common issues such as business formation, licensing, and contracts can all be handled by an experienced business lawyer such as Heather Ijames. She can help you navigate through the legal aspects of your small business so you can make appropriate decisions and protect your new business.
Let us take a look at some of the most common legal issues small businesses face today.
#1 Determining Which Type of Business Entity
Before you do anything, you need to determine how your business will be structured. There are several types of business structures you can choose from, each with its own advantages and disadvantages. Whichever structure you choose will affect your personal liability, tax obligations, ongoing business expenses, and more. Choosing the wrong entity type could result in costly fees or fines that may negatively impact your business. A few business structures to choose from include:
- Limited Liability Company (LLC)
- Close Corporation
- Sole Proprietorship
A business lawyer can help you decide which structure to operate under. There are other resources you can use as well, such as the Nevada Secretary of State, that will help you determine which business model is best for you. However, nothing can truly replace the guidance from an experienced lawyer who can provide examples of where the liability protection shines, and where it lacks. Moreover, even though formation may seem simple, and these days many non-lawyers, including CPAs, are doing formation paperwork, only an attorney can really speak on the liability protections and consequences.
#2 Obtaining Proper Licensing and Insurance
When it comes to obtaining business licenses and insurance, it is crucial that you obtain the proper documents and licenses for your company. Many business owners are unfamiliar with the government restrictions that are placed on business licensing. The cost and requirements for business licenses often vary by location making it difficult to determine which licenses are needed.
Getting the wrong licensing or failing to obtain proper insurance can be costly for a business to mend. A business lawyer can advise on what other protections you need for your business.
#3 Contract Writing
Drafting and negotiating business contracts is challenging for someone who is unfamiliar with all the state laws, regulations, and guidelines that need to be considered. The need to create a legally binding business contract that works for your particular business is worth its weight in gold. This is where cookie-cutter contracts serve no real good and could lead to problems later on.
Similarly, negotiating a business contract can be quite tricky if you are less familiar with the terms and phrases being used. Having a poor understanding of business contracts leaves you vulnerable to facing serious legal complications which can be detrimental to your company. A small business attorney like Heather Ijames will ensure your contracts are sound so that your business is secure.
#4 Purchasing or Selling Your Business
Purchasing and selling an asset such as your business is no small task. Should you decide later on that you want to purchase another business to expand, or want to sell your business, you will be required to deal with all the necessary documents, licensing, and valuation. This can be a lot to handle on top of managing your business, and many business owners have little experience with real estate transactions. This could result in missed opportunities, loss of revenue, or becoming the victim of a poor investment option.
A business lawyer better understands how to make the transition in a way that protects both the seller and the buyer. This is not the time for handshake deals, even if it is with a family member or friend.
#5 Handling Employee Conflicts
Part of being a business owner is dealing with employee conflicts. This is not always easy as it can put yourself and others at risk of litigation. There are several federal and state laws that your business must follow in regard to your employees such as health and safety regulations, anti-discrimination, and hours and wages. Fortunately, a business lawyer can help create documents and develop new policies and procedures that ensure you do not violate any laws and protects you from costly lawsuits from employees. Lastly, you will always want to protect your company’s information from what has turned into a revolving door of employees. However, non-compete laws are always changing. While it is detrimental to have a non-compete with key employees, and non-disclosure agreements with all your employees, drafting them wrong could expose your business to heavy fines. Heather Ijames is experienced in how to draft these agreements to protect your business and your information.
Hire Heather Ijames As Your Reno Business Lawyer
Hiring a business lawyer can help you avoid legal complications and resolve any legal conflicts that may arise. Ijames Law provides legal assistance to small businesses by creating sound contracts that protect you and your company, overseeing the business startup process, and much more. See how Heather Ijames, a top Reno business lawyer, can help you today by scheduling a consultation.