Since there is only a handful of us trained in law practices, the rest of us struggle to spot myth from reality in business law. This article seeks to clear up some misinformation, giving readers all they need to know, not to get swindled.
Corporate law is an entire area that works internationally, nationally and state by state. It includes local laws, federal laws, and all aspects of your business. Whenever you release a new product or take on a new partner, you ought to consult with an attorney. Having a lawyer at the other end of the phone if something goes wrong is just a bonus.
Let’s talk about business law and the myths surrounding it.
Debunking Myths About Corporate Law
To find out what was fact and fiction, we consulted with well-known lawyers in Sydney specializing in business, corporate, and commercial law.
Myth #1: Lawyers are only helpful when customers sue you
It is an innovative idea to keep a business attorney on retainer just in case something goes wrong. Lawyers aren’t just there for clients who want to sue you. Instead, they can advise you on things like product safety and Labor Laws, regulations over goods and services in your area, insurance, compliance with the law, and numerous other tasks. You can even send your business copy to the lawyer to ensure you are legally compliant.
Myth #2: SMEs can’t afford lawyers
There is a pervasive myth that lawyers will cripple your small business with fees. This is incredibly unlikely. If you are a small company whose lawyer overcharges you, don’t stand for it. Others would gladly take on your business. SMEs can afford lawyers in the same way that they can afford accountants. It is an unwritten rule of business that you might one day need one.
Myth #3: Lawyers are out to make money
This is a bit true, to be fair. All of us are out to make money; otherwise, we couldn’t afford our rent. However, a lawyer is no more out to rob you than your stockiest is, or your suppliers are, or your insurance rep is. Every one of them could overcharge you, yet it is the lawyer that gets a bad reputation. Think of lawyers as specialists in law who run their businesses. If they ripped off every client that came to them, they would shortly have no clients left.
Myth #4: The company is too small to need a lawyer
We hear this myth repeatedly, and it is dangerous. To imply that your business doesn’t need a lawyer is to live life on a knife’s edge. Imagine you released a product and didn’t realize that your main competitor released a replica of it a year before. Imagine you released a food item without allergen information on the packaging, and someone died. No company is too small to need a lawyer. It’s best to ask questions before you act than to wait for the repercussions to drive you out of business.