When starting a business, it is often tempting to save money and avoid hiring high-paid professionals. While it saves a person a few dollars, it will cost them in the long run as one mistake can leave a company with serious issues. Here are three reasons why an entrepreneur needs to hire a lawyer to help with his or her business.
Taxes:
It is wise to think of taxes when starting a company. Since tax rates vary, one can hire a lawyer and find the best place to incorporate. Furthermore, when tax time rolls around, an entrepreneur will experience fewer issues when using a lawyer. Since business owners often worry about dozens of expenses and need to determine the right way to write off costs, it is wise to find a qualified lawyer who can help one with their credit card processing and merchant account receipts as one mistake will lead to a costly audit.
A way out for both partners:
People usually start a company with their friend or business partner. While an excellent way to combine resources and brains, it often leads to disasters when the duo can’t agree on certain terms. In the short run, it is not usually a huge deal and it won’t merit attention. However, over time, people often grow frustrated with one another. For example, when choosing a credit card processing provider or looking at merchant accounts, partners often disagree on which company to choose. Once issues worsen, one partner will often want to walk away from the deal and move on with their life. With a qualified attorney, new entrepreneurs can sit down together and devise a viable exit strategy.
Sell to investors:
While unthinkable in the beginning, entrepreneurs will often want to unload their company to the highest bidder. Without a lawyer on one’s side, it is easy to struggle against well-funded and experienced buyers who want to pay the lowest price. With a smart attorney on one’s side, a seller will command top-dollar for his or her business as a legal expert can help one navigate this scary and time-consuming process.
It’s not easy to build on an idea and create a valuable company. With a lawyer, one will help their cause and improve their chances to run a viable organization.