do you need an attorney when you have your own business

How to prevent unnecessary attorney costs?

To prevent unnecessary attorney costs at the inception of your business as well as tremendous costs after a lawsuit has been filed, you might consider a consultation arrangement with an attorney. Such an arrangement would entail you doing most of the legwork of research and the attorney providing legal review or guidance.

What to do if your business is facing challenges?

Contact a qualified business attorney to help you address potential challenges a business can face.

What happens if your business doesn't cause environmental problems?

An environmental issue arises and your business is involved (even if your business didn't cause the environmental problem, you may be penalized) Negotiating for the sale or your company or for the acquisition of another company or its assets.

Do you need legal help when it's too late?

But when you do, it's good to know where to find the right one. And -- more to the point -- you may not know you need legal help until it's too late, as attorneys can help you stay in compliance with the law and spot developing legal issues early.

What is the vast majority of US businesses?

The vast majority of US businesses are service-based businesses. In general, service-based businesses face less liability. If you’re in a field with high malpractice concerns, you’re exposed to more liability but at the same time -- insurance often covers that.

What is legal basketball?

Legal is like the rules of a game. It eliminates ambiguity. Except business laws have a rule book about 1,000x bigger than the rules in the NBA. Imagine focusing all your energy on learning how to shoot, assuming you can carry the ball (without knowing to dribble) anywhere you go -- when you play your first game, you’ll be at a huge disadvantage and have to stay in one place.

Why do lawyers make less sense?

The biggest reason lawyers can make less sense generally is cost. If you have unlimited capital, then you can save time by hiring a great lawyer (in the same way you’d hire an expert for everything else, like SEO, marketing, design, sales, etc.).

Is Google a trademark?

The names "Google Legal, Inc." "Google Schools, Inc." etc. are available for any corporation to form in Missouri. But, Google has a trademark for the name "Google" across the United States -- so if you formed, spent money on branding, a website, a logo, building goodwill, etc. on any of those names, eventually Google would discover and require you to stop doing business under that name.

Can a business infringe on another business's trademark?

Most new businesses overlook trademark implications that exist from the start. When you register your business, it can't infringe on another business's trademark. Just because your name was available in your state doesn't mean it's not infringing on a trademark.

What is a healthcare power of attorney?

Healthcare power of attorney is more flexible and leaves the decisions regarding healthcare to the agent. Where a living will relates to end-of-life decisions only, healthcare power of attorney applies in all medical situations.

What are the different types of power of attorney?

Three main types of power of attorney exist: 1. Financial Power of Attorney. Investopedia mentions that financial power of attorneys allow an individual to deal with the financial responsibilities and functions of the principal (the person who signs the document) if the principal can't do so themselves.

What happens if an agent misuses a power of attorney?

If your agent misuses power of attorney, you have the option to take them to court. However, obtaining a judgment against a power of attorney will take a long time, and there is no guarantee that you will collect any reimbursement from the agent if there is no money or property left in your name.

When does a power of attorney come into effect?

Typically, a power of attorney comes into effect when you become incapacitated and ceases to function once you can make your own decisions. However, there are ways to extend a power of attorney to times when you aren't hindered by including a clause that allows the agent to make decisions on your behalf even when you can do so yourself. By having this clause, you create a durable power of attorney. Durable power of attorney is also called enduring power of attorney and may be applied to any of the types mentioned above. Thus a durable financial power of attorney can make decisions on behalf of a business owner when they aren't incapacitated.

What is a power of attorney?

The Consumer Financial Protection Bureau (CFPB) defines power of attorney as a legal document that grants someone else the authority to act on your behalf. Signing a power of attorney allows the person noted in the form to conduct business as if they were you. The person mentioned in the document is called the "agent" or sometimes ...

When do you sign a financial power of attorney?

In many cases, business owners sign financial power of attorneys over to their spouses when they become incapacitated so that they can have someone they trust managing their finances when they're unable to do so themselves. Even if you sign a financial power of attorney to your spouse, many states require you to become incapacitated before the responsibilities of the power of attorney transfer to your spouse. This specificity ensures that you don't have to worry about your spouse taking control of your finances unless you're unable to.

Do you have to be incapacitated to sign a power of attorney?

Even if you sign a financial power of attorney to your spouse, many states require you to become incapacitated before the responsibilities of the power of attorney transfer to your spouse. This specificity ensures that you don't have to worry about your spouse taking control of your finances unless you're unable to. 2.

How to educate yourself about business law?

The law intimidates many small business owners, but it doesn’t have to. The key is to educate yourself as much as you can. Use self-help legal sites such as those mentioned above to get a basic understanding of legal issues. They have resources, articles, templates, legal forms and other tools you can use to tackle simple legal matters on your own.

Why do you need a contract?

Make sure your contract is clearly written, outlines the scope of work and payment, and covers all the possibilities that could go wrong.

What to do if you are hit by a lawsuit?

Having a relationship with a lawyer before you need one can ensure you have someone to turn to in an emergency.

How to stay out of legal trouble?

The key to staying out of legal trouble is to think ahead at every stage of your business. From naming your company and designing a logo to negotiating a lease for your new business and hiring your first employee, running a business involves many potential legal traps that can trip up the uninformed. Knowledge is power, so know what your legal rights and responsibilities are at each stage of business development.

What do small business owners spend most of their days on?

Small business owners spend most of their days focused on the nitty-gritty, like marketing their businesses, managing employees and serving customers. One area that tends to take a backseat: legal concerns.

Should a business trademark its logo?

Every business should trademark its logo and other identifying brand marks. There’s plenty of self-help information available at the U.S. Patent and Trade Office website; generally, you can handle trademark filing on your own. Patents are more complex, however, and making a mistake in this area can be costly. An attorney specializing in patent law can be invaluable in getting through the patent process.

Can an attorney represent you in court?

If you need to escalate the situation and take the client to court, an attorney can either represent you or offer advice.

Legal Tasks You Can Handle on Your Own

Putting up and running a business definitely involve a series of legal tasks that you must complete in every stage of your business’s lifetime. Even though you are not very skilled and knowledgeable with different legal issues of a business, there are tasks that are fairly straightforward which you can feasibly learn.

Legal Issues that Need a Business Lawyer

There are times when a business encounters legal issues that are too complex to handle. When your business is at risk of such issues, especially those that involve a high liability risk, then hiring a business lawyer is not just recommended but necessary.

Important Tips When Hiring a Business Lawyer

While you certainly need to hire a business legal counsel for issues stated above, as a business owner, you should be focused in preventing such issues to happen in the first place, especially the last three issues that were mentioned.

Set Aside a Budget for Legal Needs

Hiring the services of a business lawyer can be costly. Aside from making sure that you take the necessary precautions to prevent legal issues that will compel you to hire a lawyer, it is also important to set aside a budget for this rare event even while you don’t need it yet.

What does a power of attorney do for a medical professional?

A health care power of attorney gives your agent authority to make medical decisions for you if you are unable to do so on your own. As an illustration, a health care power of attorney will take effect if you become unconscious or mentally incapacitated, and your doctors need someone to make decisions on your behalf.

Why does Jason have a POA?

To point out, Jason could use a special POA to give his brother authority to sign loan papers on his behalf while he’s in the hospital.

What is an agent in real estate?

Your agent is your fiduciary. This term means they must act in good faith in your best interests. The agent should keep accurate records, keep your property separate from his or hers, and avoid conflicts of interest.

When does a power of attorney go into effect?

A financial power of attorney can go into effect when you sign it. Or, it can have specific start and end dates.

Can you sue an agent for misuse of power of attorney?

You can sue your agent for misuse of power of attorney. But obtaining a court judgment against an agent can take years. It could also be uncollectible if there is no money or other assets left.

Who can be the executor of a will?

However, the person you named as your agent in your power of attorney can also serve as the executor of your will.

Does a power of attorney end if you are incapacitated?

In most states, unless a power of attorney provides otherwise, it automatically ends if you become incapacitated. To avoid this, you must include a clause that makes yours “durable.”

What is a legal consultation?

A legal consultation can help an owner determine which corporate entity will be most advantageous and how to get the most out of incorporating the business. Attorneys can also highlight the downfalls of different entities in terms of liability and tax, as well as show you how each different option will have varying effects on the business.

What are the benefits of a corporation?

There are multiple benefits to organizing your company as a corporation: A corporation limits your personal liability and may make tax breaks available to you. Your corporation can take tax deductions for the cost of health insurance and life insurance.

How to organize a corporation?

There are multiple benefits to organizing your company as a corporation: 1 A corporation limits your personal liability and may make tax breaks available to you. 2 Your corporation can take tax deductions for the cost of health insurance and life insurance. 3 Incorporating also means people will take your company seriously and you can set the stage for future expansion of your business. 4 You can raise capital for the business through the sale of stock. 5 Ownership in a corporation can be transferred easily should you decide to sell.

Is it cheaper to incorporate on your own?

It is definitely tempting to incorporate on your own because it's less expensive than hiring an attorney. "While state fees generally total between $100 and $250, the average attorney charges that by the hour," says Matthew A. Dolman, a Florida-based attorney with Sibley Dolman Gipe Accident Injury Lawyers, PA.

Is it worth it to have an attorney for incorporation?

Dolman offers some perspective for those contemplating DIY incorporation versus using an attorney. "Ultimately, if you have the money to spare, it's well worth it to have an attorney guide you through the process of incorporating. You'll not only save time but also stress, as you'll have a live expert available to both answer your questions and advise you on how to proceed. However, if money is tight, the process is absolutely something you can do yourself."

Who is Rudri Bhatt Patel?

Rudri Bhatt Patel is a former attorney turned writer and editor. Prior to attending law school, she graduated with an MA… Read more

Who can guide you through the incorporation process?

Owners who are unclear about the process of incorporation may want to hire an attorney. Peter Home, with the firm Geoff McDonald & Associates, says, "An attorney can guide you through the process as well as teach you the ins and outs of how your company will need to operate once incorporated."

From insurance to accounting to taxes, here are the steps to starting a business

Thinking about starting a business? You're not alone. Every year, thousands of Americans catch the entrepreneurial spirit, launching small businesses to sell their products or services. Some businesses thrive; many fail.

More Resources for Starting a Business

As you can see, starting a business involves making quite a few initial decisions and getting policies and paperwork in place. For more information about and help with starting a business, consult the following Nolo resources:

What is a coworking space?

Much like virtual office space, coworking spaces provide you with a more professional mailing address to use for your business and meeting and conference rooms you can use. However, coworking spaces also offer you a physical space to actually work in, along with the use of shared resources, such as Wi-Fi.

What is virtual office?

Virtual office spaces, or virtual business addresses provide you with a professional-looking mailing address, and many also offer additional features and facilities, such as receptionist services and meeting spaces which can be rented when you need them.

Why do businesses need a physical address?

There are a number of reasons why you may want to have a physical address for your business, such as: Trust and credibility. Some clients may steer away from businesses that provide no contact address, or only a P.O. Box number—for example, people may worry that businesses without physical addresses might disappear without a trace.

Can an LLC be a registered agent?

Many small businesses registered as LLCs will often have a member of the LLC serve as the registered agent for the business, with the place of business used as the registered agent address. However, in cases where an LLC is being operated out of your home, this may not be the ideal situation, as the registered agent's address is a matter of public record. P.O. Boxes aren't an option in such cases, as a P.O. Box can't be used as a registered agent's address. A physical address is required, because the address must be a place where service of process can occur.

Is a physical address good for a business?

Census Bureau in 2011, more than half of businesses responding to the 2007 Survey of Business Owners were home-based businesses; home businesses are obviously alive and doing well in the U.S. today. Despite these statistics, however, it can be difficult for a home-based business to shake the image some clients may have of the home-based business owner sitting in bed working in his or her pajamas. A physical address provides your business with a more polished, professional image.

Can an LLC be an LLC out of your home?

If you operate your LLC out of your home and prefer not to have your home address listed in public documents as the address of your registered agent, you will need to appoint a third-party to serve as your registered agent. The third party can be an individual, such as an attorney, or it can be a company whose business offers registered agent services.