How does a corporate law firm help small businesses grow?February 9, 2021 By Dinesh Parmar
When looking at the initial growth of a business, it is easy to consider other matters such as advertising and operations as more pressing issues than hiring a lawyer. Since many legal issues may not be of immediate concern to small business owners, they often ignore it until it is too late for them to seek legal assistance to ‘fix a problem’. By the time a business is sued, the preventable damage has already been done and the only concerns that remain are attorney fees, court fees, and damages.
On the contrary, working with a corporate law advisor from the beginning of a business can help build a solid legal foundation for the business in many ways.
Corporate lawyers can help business owners through the incorporation and foundation process to create strong legal structure for the company. They can do this by helping organisations assess the business, counsel them on pros and cons of incorporation, determine the right time and method for incorporation, conduct name searches, draft articles of incorporation, file them with the relevant registry offices and develop bylaws.
Poor corporate governance can have disastrous effects on a small business. Drafting governance policies in a structured way that is backed by a legal framework can help in smooth functioning of the business in the long-run. A business lawyer can advise clients on matters such as annual shareholders, director or partner meetings, recording minutes of said meetings, electing internal officers, etc.
Legal compliance & risk management
Corporate lawyers ensure your company’s compliance with local, state and central laws as well as meets regulatory requirements. Additionally, they also help identify sources of possible legal risks, analyse them, find preventative measures and ensure that the company as well as all the employees adhere to associated laws and regulations.
Corporate lawyers help understand which type of intellectual property protection can be the most beneficial for your business. Intellectual property protection helps safeguard a brand’s identity by making its services and products more distinctive in a pool of competitors, building recognition and loyal customers, creating valuable business assets, communicating effectively with the audience, establishing an emotional connection, and forbidding competitors from poaching customers. A corporate law firm can help protect your innovations from infringement by drafting relevant applications, guiding through the filing patents, trademarks and copyrights to protect the business' interests. They can also keep a watch on accidental infringement and ensure that the business doesn’t violate existing patents, copyrights or trademarks.
Corporate lawyers assist businesses by helping them draft employment contracts and mandatory documents like non-compete & non-disclosure agreements. They can help draft handbooks for employees that outline the terms of employment, compensation specifications, additional benefits and policies. These agreements ensure that employer-employee relations, workplace policies, and safety standards comply with current employment laws. Lawyers can also help protect businesses in unpleasant situations like undue termination or sensitive matters like sexual harassment and discrimination. Assistance of corporate attorneys for drafting employment contracts not only ensures smooth operations during the employee’s term but also protects the business from disgruntled former employees from using their information against the business after they resign.
Corporate lawyers help create an appropriate business structure that not only minimizes potential tax payments, but also helps avoid personal liability and future risks such as incorrect tax reporting or non-compliance with taxation laws. They will keep you updated on due dates, filing deadlines and guide through more systematic record keeping. Consulting a qualified lawyer for matters on taxation can help save money in the long run.
Working with a corporate lawyer is necessary to execute a clear exit strategy for small businesses to determine whether the business will shut down, be sold to another company or how the operations will continue if a partner or major shareholder decides to leave.
Lawyers can also assist the business through the bankruptcy process so it can recover financially and hopefully flourish again.
Lawyers can assist with legal disputes as minor as debt collection as well as with complex lawsuits from disgruntled former employees, injured customers, breached contracts or other businesses. They can help you settle the lawsuit without going to court or suggest the best course of action to minimize mitigation damages if you’re sued. Every business requires legal assistance to solve disputes and for corporate litigation at some point, which is why it is beneficial to keep corporate law firms involved in your business throughout.
Instead of relying on legal assistance as a means of damage control after disputes arise, working with a corporate law firm from the initial stages of your business can help it grow in immense ways. A corporate attorney assists with building a solid legal foundation for your business, drafts contracts and policies, protects it from infringement, prepares the business for growth, anticipates, avoids possible legal complexities, and defends the business in case of legal disputes.
Corporate lawyers are some of the most important professionals to have on the team for a growing business. As the leading intellectual property & corporate lawyers in Ahmedabad, our legal experts at Parker & Parker Co. LLP are equipped with the best tools and knowledge to assist you through counseling, prosecution, licensing, litigation, and securing your intangible assets to help your business excel creatively and financially.