I Own a Small Business, Do I Need a Business Lawyer?

I get asked this query all of the time. Mostly, this query comes from people today I run into that personal and function a compact business and have normally performed points for themselves. The business may perhaps have a handful of personnel, personal some assets and is pretty lucrative. Once speaking with them, I often hear "I never pretty have any legal issues so why do I require a attorney? Business is great and my personnel adore me." Nicely, After I hear this, I know what I am obtaining into.

The initial factor I ask these persons is: how is your business structured? LLC? Business? As soon as we figure out that answer, the subsequent concerns turn out to be: Do you have an functioning agreement if you are an LLC or by-laws if you are a enterprise? Do you have annual meeting minutes? Seven out of ten occasions persons respond "no" to these inquiries. This is why they need to have a business attorney. If they are not following corporate formalities and organizational protocols and somebody would sue the business enterprise, the opportunity of that plaintiff piercing the corporate veil and attacking the owner's own assets increases exponentially.

Yet another query I ask is: do you have written contracts for the perform you perform and the business dealing you are involved in? About four out of ten say no. Once more, this is why they require a business attorney. The handshake agreement does not operate in today's society. Almost everything need to be in writing, not due to the fact you can trust no one, it is simply because you want to safeguard your rights. If they never have contracts they use or have written them themselves, you can bet that they will devote insane amounts of income to settle disputes that may perhaps have been prevented by functioning with a business attorney from the start off.

Lastly, I normally ask them if they recognize the several federal and state employment laws that govern the employer-employee connection. Most respond with "Pennsylvania is an employee at will state and I can fire everyone at anytime." This is what I get in touch with a ticking time bomb. Yes, it is correct that Pennsylvania recognizes employment at will; on the other hand, there are different laws that give staff protection from discrimination, unfair remedy, unfair wages, and so forth. Most of the time these business owners have no notion what they never know and finish up undertaking anything that charges them ten of thousands of funds to settle. This is why they want a business attorney.

So as you can see, there are a variety of motives to perform with a business attorney As soon as you personal a business from the start off. People today improperly assume that the only time they will want a attorney is in the event that they get sued. Nevertheless, a excellent business attorney will assistance you run your business in a way that limits the causes for which you may be sued at a fraction of the expense it will take to litigate and resolve a dispute down the road.

Rocco Cozza is a Pennsylvania licensed business and true estate lawyer who assists customers recognize and implement legal methods to function their business effectively, as Nicely as produce asset protection tactics for own and business home.