If you own and operate a business, you know all too well running that business is way more than a forty hour a week obligation. You may think that the benefit of establishing a relationship with a corporate attorney is not substantial enough to justify the cost or effort, but there are many aspects of your business in which a business & contract litigation attorney can provide support. Consider the following when determining whether your small business could benefit from establishing a relationship with a corporate attorney.
1. Creation of your legal entity.
There are many different forms your small business can take: sole proprietorship, limited liability company, limited liability partnership, and s-corporation are just a few examples. A corporate attorney can help guide you to the legal entity that best suits your needs and business model. He or she can also set up that entity so that it is legally viable and minimizes your exposure to individual liability for business related actions.
2. Adhering to corporate formalities.
To provide protection from individual exposure to liability for business-related transactions or conduct, it is necessary that your business entity follow the “corporate formalities.” Operating agreements, bylaws, meeting minutes, consents to action without shareholder meetings, and annual reports all need periodic attention to ensure that corporate formalities are followed. In addition, once your initial business entity is established, you may decide to form a second or third entity. A corporate attorney can help you decide what type of business entity that should be and what relationship it should have to your existing business entity.
3. The occasional regulatory or legal question.
Your small business may be subject to government regulation. In addition, from time to time, purely legal questions may arise on which your small business needs guidance. A lawyer who specializes in commercial litigation, together with a CPA or other tax professional to address tax related questions, can help you traverse any such regulatory and legal obstacles.
4. If your company gets sued or needs to sue someone.
With any business, there is always the potential for civil litigation. A disgruntled customer might decide not to pay a bill, a vendor or supplier may breach a contract, or a person could be injured on your business premises. If something like that happens, a breach of contract attorney can guide you through the process, help you with insurance coverage questions, obtain insurance defense if there is coverage or, if not, bring or defend a claim directly.
This blog post is not intended to suggest that your small business should necessarily have a corporate attorney constantly on retainer. However, when forming your businesses corporate entity or if contract issues arise, it’s important to have a corporate attorney that you can trust. At Morrow Porter Vermitsky & Taylor, PLLC, our corporate attorneys stand ready to engage as much or as little as you deem appropriate for the needs of your small business. Contact our corporate attorneys today who specialize in civil litigation, both commercial & corporate.