Starting your own business can be very exciting. As an entrepreneur, there are a whole host of factors to consider, making the process interesting. From choosing a name to appointing your first employee and everything in between, it will keep you busy.
You may be a subject matter expert on the product or service you want to offer, but how familiar are you with business regulations and compliances? Consulting with one of the expert business lawyers Melbourne law firms can offer will give you all the legal insight you need.
Important Topics to Have Clarity on Before Launching Your Company
Before launching your company, it’s important to have clarity on all the legal matters that’ll keep your business compliant and as risk-free as possible. We’ve listed a few of the questions you should ask in your first conversation with your new business lawyer.
Do You Need Contracts for Employees?
Most small start-up companies only begin with a few people. Business owners often don’t think it’s necessary to draw up contracts if they only have two or three employees.
As your business lawyer will tell you, litigation from just one disgruntled employee couldn’t only cost you thousands of dollars in legal fees but could do your reputation serious damage. It’s important to have clear and simple contracts with all your workers. Even if there are only two of them!
This will save you from dealing with discrepancies over hours worked, payroll issues, days off and many other matters. Having these contracts in place gives you grounds for action during litigation. Also, it enables you to take necessary disciplinary actions against employees should any violations arise.
How Should You Deal with Potential Litigation?
No one ever thinks they’re going to be sued when they set out to open their own business. You might think your business doesn’t deal with the kinds of issues that might result in litigation. The truth is, there’s always the possibility that your company, or even you directly, could be sued.
Litigation can come from different sources. Dissatisfied customers and disgruntled employees are only two of the potential threats your company could face. Since litigation matters might not be your area of expertise, it’s best to leave these matters to the expertise of a business lawyer! As them what exactly you should do in order to protect your interests, the moment a legal matter pops up.
Is It Necessary to Back-Up Business Documents?
When you’re planning your business, the last thing on your mind is probably the backing-up and storage of business records, company data and customer information. You might only start giving it some serious thought when documents are requested for tax purposes, possible litigation or compliance inspections.
It’s crucial to ask your business lawyer about the types of documents and records that need to be kept. It’s also important to enquire about the length of time documents must be put in storage. If you don’t have the office space for the required document or records, you can ask your lawyer about the legalities of cloud storage for your particular business.
How Important is Business Compliance?
No matter what industry your business falls into, there will be certain regulations and compliances you need to adhere to. Failure to comply with government compliances could result in penalties, fines or even corporate liabilities being instituted against you and your company.
Business lawyers are well versed in the different industry regulations. They will easily be able to advise you on the laws and by-laws specific to your niche.
What Should I Be Aware of Before Considering Investors?
You might not be thinking of taking on investors when you first start formulating your business idea. But, as your business grows, it may become practical to accept cash from external investors. A considerable cash injection from an investor could be the break your company needs to expand.
A business lawyer will be able to advise you on the legalities of taking on investors. They’ll also ensure the conditions, expectations and responsibilities of both parties are drawn up in a legally binding document.
Your business lawyer will be able to advise you on offers that should be considered and those which won’t be beneficial to your company in the long run. The last thing you’d want is to lose your business because of the wrong investment.
Conclusion
Consulting with a business lawyer shouldn’t only be something you do when your business is in trouble. Having clarity on all legal and compliance factors is crucial to creating, building, running and expanding your business.
Asking the right questions when talking to your business lawyer will ensure you have the correct policies, contracts and compliances in place to safeguard you against potential litigation. Make sure you don’t lose your dream business over an issue that could’ve been avoided. Have a conversation with a business lawyer today and get all the answers you need!