Starting a business requires a great deal of planning, paperwork and preparation. All your hard work could be for nothing, however, if you overlook critical details during the planning process.
Missing important language in your business contracts, choosing the wrong business structure or failing to pay your taxes are examples of mistakes that could have expensive consequences.
Avoid contract disputes and litigation
Errors in your business contracts could lead to significant legal issues down the road. A few common types of contract disputes could lead to expensive litigation for your high-value company. You can avoid contract disputes and lawsuits against you by using a legal professional to help you with the language of your documents.
Select the right type of business structure
The Secretary of State in Michigan lists the different types of business entities you can choose from when deciding ownership structure for a company in the state. You must choose the right ownership structure for your company if you wish to protect yourself from liability. Your business structure will also affect the documentation you must keep, what funding options you may use and what taxes you and/or your company will pay.
Have an attorney available for the future
Hiring a lawyer gives you access to a knowledgeable legal professional who understands the ins and outs of your business. This can help you deal with potential legal issues in the future. You may need a lawyer if employees file claims against you, the government investigates your business or you wish to acquire another company.
Prevent problems before they occur
Settling a discrimination lawsuit or wage and hour claim could cost thousands of dollars in legal fees and penalties. It is always better to prevent these issues than to resolve them. Using a lawyer from the very beginning, during planning, can help you avoid common problems. A lawyer can help you close contractual loopholes and make the right business decisions moving forward.