Most entrepreneurs I interviewed on my podcast, Figuring Out, had one thing in common. They all had hired a lawyer or formed a legal counsel as soon as the company was established, even before hiring any other employee. I know it sounds like a luxury only big houses can afford. But trust me, it is very important to have in-house lawyers. A business needs to follow stringent laws set by the government. Starting from the terms of renting an office space and hiring employees. Just because you are good at handling business doesn’t mean you also understand the legal terms. You need someone to lean on and understand what those words in the documents mean and how you can counter them if the contracts are broken.
1. Contracts and legal agreements
Contracts are the most important part of any business. It includes everything and everyone, from customers and clients to suppliers. You must make an air-tight agreement so the other party does not dupe you. The terms and conditions need to be properly stated to each party. A legal counsel can negotiate the most favorable terms for your business and notice any possible pitfalls that might come your way.
2. To file lawsuits
You may often encounter situations where you have to face legal disputes. It can be something related to the customer or employee. Having a lawyer on your side makes it a game-changer. You can explore various methods for conflict resolution. A lawyer can also recommend strategies to operate in a manner that minimizes financial losses and safeguards your reputation during a legal dispute.
3. For mergers and acquisitions
When you grow, you might acquire other firms or businesses or merge with them for expansion. As great as that sounds for your business, having a legal document stating who owns what and who gets what is crucial. the other party could potentially make different claims after your companies have collaborated, leading to potentially devastating consequences.
4. Tax rules
Navigating the labyrinth of business laws, regulations, and compliance requirements can be overwhelming. Laws constantly change, and non-compliance can lead to costly fines or legal disputes that cripple your business. A legal counsel informs you about the latest legal developments and ensures that your business operations comply with all relevant laws.
5. To get due payment
You will inevitably come across clients and business associates who have the potential to significantly impact your life, often for worse. The most common way is not fulfilling their promise of payment even after you’ve delivered your work. When you do not have lawyers to consult with, imagine the hassle! Your endless calls and emails are falling on deaf ears, and the legal path ahead of you is obscure. But, in another scenario, your lawyer can send them an official legal notice and level it up if need be. And this is just one of the many ways a lawyer can be an excellent strategic partner.
Legal counsel is your shield against legal threats who guides you through complex legal landscapes, and is a strategic partner in making crucial decisions. Investing in legal counsel can save your business from costly mistakes, protect your assets, and help you achieve sustainable growth. Hence, it is a requirement for success.
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