Why You Should Hire a Lawyer Before Entering a Business Partnership
You’re excited to start a business with either a friend or coworker. You think it’s going to be a great business partnership. You either get along very well or work well together. All of that may be true, but it’s important to meet with a business lawyer before going into business. You might not think it’s important, but a business lawyer can help with things that you never even thought of.
A lawyer can help you figure out the best way to structure your company. There are multiple different structures out there, and a lawyer can help you navigate that. The different options affect how your business is owned, taxed, and managed. Some of the structures limit certain people’s liability and make others more liable. A lawyer will make sure you understand all of these things, and what’s best for your situation.
A lawyer is great for setting up the partnership agreements. Do you want to make sure you know how things are going to be split. Is it a 50-50 split, 60-40, or another combination? A lawyer can help you navigate the challenges of figuring this out and making sure the correct split is made. Beyond that the agreement will have all the details on compensation, roles and responsibilities, as well as exit causes. These are all things you may not think of that a lawyer will make sure you’re protected on. This will also ensure that you don’t have business litigation later on, because everything is already set up.
A business lawyer can help you with the licenses and permits. You may not realize everything that you need to go through in order to start your business. There may be a number of permits you need to receive as well as licenses. These things take time and you want to know what you’re getting into before you go into business. It may take a while to get all of the things you need and a lawyer can give you an idea of how long the process will take.
A lawyer can look at contracts that have been drawn up by your partner and make sure you’re protected. Your partner may have drawn up papers that are more favorable to him or her. A business lawyer will find these issues and make the necessary changes to ensure that your interests are met as well.