Legal Advice: The value of legal advice for businesses
Legal Advice: The value of legal advice for businesses

Whether you are establishing a business or expanding an already established business, certain legal aspects you may not be aware of come into play. The number of decisions that require legal advice may surprise you.

Many business owners overlook the importance of legal advice until it becomes a necessity, and in some cases, it could be too late.

Good legal advice can be crucial to the success of your business and can assist you in almost every aspect of your business, from the structure of your business to intellectual property, contract law, employment law and more.

The importance of legal advice for your business may not be so apparent. Legal advice can assist you with:

1. Choosing the correct business structure

You have selected a partnership as your business structure, fast-forward 3 years and your partner incurred excessive debt for the business. Little did you know you would be held personally liable for the debt incurred by your partner and now you are faced with selling your car to pay the debt.

This is a common mistake made by business owners which is why it is important to have a corporate lawyer help you select the correct business structure to best suit your business and its needs. Whether it’s a sole proprietorship, private company, limited liability company or partnership, a corporate lawyer can help set up and properly organize your business.

2. Protecting your Intellectual Property

You decide on a business or product name and start using it on your website, in your domain name, on business cards, social media pages and products and 6 months later you receive a threatening letter from another company, with an identical or similar business or product name, demanding that you immediately cease use and threatening to take you to court. What a dilemma!

Obtaining legal advice can save you money and time. An experienced intellectual property lawyer will ensure that your intellectual property is protected and that you are not infringing a third party’s intellectual property right.

3. Contract Management

In an attempt to save money, business owners use templates from Google without fully understanding the purpose of the document, the rights and obligations contained therein and whether it creates any implications for the business. A one-size-fits all approach cannot be followed as each business has unique requirements. Binding your business to an agreement without being fully aware of the implications could have significant consequences.
Consistently well drafted contracts and careful contract review are imperative to the quality and success of business transactions. An experienced business lawyer knows exactly what to look out for in an agreement and will negotiate the agreement to ensure that your business is protected.

4. Limiting disputes

Making business decisions without having knowledge of the legal implications has the potential to give rise to disputes. This could mean lengthy and costly litigation which is the last thing your business needs.

Instead of waiting for disputes to arise, it is best to have legal guidance from the outset. The fees paid to save your business from getting into trouble is only a fraction of the fee that will be charged for litigation.

5. Obtaining the best possible outcome

Whether it is a deal you are negotiating or a disagreement with employees, a lawyer will ensure that your business gets the best possible outcome. Instead of trying to navigate the various potential outcomes by yourself, it is advisable to obtain legal advice.

The takeaway from this article is to seek legal advice when starting and growing your business for greater potential. Your business will always face legal risks that it should be protected from. Laws are constantly changing and evolving, and for you as a business owner, with little legal knowledge and experience, keeping track of these changes can be a daunting task.

At Xellerate, we work closely with our clients with a mission to elevate client outcomes, value and experience. Contact us if you require legal advice – we are experts in business legal needs.

Written by: Accelerate Legal Solutions
May 1, 2022